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Full text of "North Carolina Register v.6 no. 19 (1/2/1992)"

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The 
NORTH CAROLINA 

REGISTER 




IN THIS ISSUE 

PROPOSED RULES 

Economic and Community Development 
Environment, Health, and Natural Resources 
Housing Finance Agency 
Human Resources 
Pharmacy, Board of 
State Personnel 



RECEIVED 

JAN 10 1992 



LIST OF RULES CODIFIED 



RRC OBJECTIONS 



LAW LIBRARY 



RULES INVALIDATED BY JUDICIAL DECISION 

ISSUE DATE: JANUARY 2, 1992 
Volume 6 • Issue 19 • Pages 1424-1503 



INFORMATION ABOUT THE NORTH CAROLINA REGISTER AND ADMINISTRATIVE CODI 



NORTH CAROLINA REGISTER 

The North Carolina Register is published bi-monthly 
and contains information relating to agency, executive, 
legislative and judicial actions required by or affecting 
Chapter 150B of the General Statutes. All proposed, ad- 
ministrative rules and amendments filed under Chapter 
150B must be published in the Register. The Register 
will typically comprise approximately fifty pages per 
issue of legal text. 

State law requires that a copy of each issue be pro- 
vided free of charge to each county in the state and to 
various state officials and institutions. The North Carolina 
Register is available by yearly subscription at a cost of 
one hundred and five dollars ($105.00) for 24 issues. 

Requests for subscriptions to the North Carolina 
Register should be directed to the Office of Ad- 
ministrative Hearings, P. O. Drawer 27447, Raleigh, N. 
C. 27611-7447, Attn: Subscriptions. 

ADOPTION, AMENDMENT, AND REPEAL OF 
RULES 

An agency intending to adopt, amend, or repeal a rule 
must first publish notice of the proposed action in the 
North Carolina Register. The notice must include the 
time and place of the public hearing; a statement of how 
public comments may be submitted to the agency either 
at the hearing or otherwise; the text of the proposed 
rule or amendment; a reference to the Statutory 
Authority for the action and the proposed effective date. 

The Director of the Office of Administrative Hearings 
has authority to publish a summary, rather than the 
full text, of any amendment which is considered to be 
too lengthy. In such case, the full text of the rule con- 
taining the proposed amendment will be available for 
public inspection at the Rules Division of the Office of 
Administrative Hearings and at the office of the pro- 
mulgating agency. 

Unless a specific statute provides otherwise, at least 
30 days must elapse following publication of the pro- 
posal in the North Carolina Register before the agency 
may conduct the required public hearing and take ac- 
tion on the proposed adoption, amendment or repeal. 

When final action is taken, the promulgating agency 
must file any adopted or amended rule for approval by 
the Administrative Rules Review Commission. Upon ap- 
proval of ARRC, the adopted or amended rule must be 
filed with the Office of Administrative Hearings. If it 
differs substantially from the proposed form published 
as part of the public notice, upon request by the agen- 
cy, the adopted version will again be published in the 
North Carolina Register. 

A rule, or amended rule cannot become effective 
earlier than the first day of the second calendar month 
after the adoption is filed with the Office of Ad- 
ministrative Hearings for publication in the NCAC. 

Proposed action on rules may be withdrawn by the 
promulgating agency at any time before final action is 
taken by the agency. 

TEMPORARY RULES 

Under certain conditions of an emergency nature, 
some agencies may issue temporary rules. A temporary 
rule becomes effective when adopted and remains in 



effect for the period specified in the rule or 180 
whichever is less. An agency adopting a temporar 
must begin normal rule-making procedures on tb 
manent rule at the same time the temporary n 
adopted. 

NORTH CAROLINA ADMINISTRATIVE COI 

The North Carolina Administrative Code (NC^ 
a compilation and index of the administrative ru 
25 state agencies and 38 occupational licensing be 
The NCAC comprises approximately 15,000 lettei 
single spaced pages of material of which approxi 
ly 35% is changed annually. Compilation andpu 
tion of the NCAC is mandated by G.S. 150B-63(1 

The Code is divided into Titles and Chapters 
state agency is assigned a separate title which i 
ther broken down by chapters. Title 21 is desig 
for occupational licensing boards. 

The NCAC is available in two formats. 

(1) Single pages may be obtained at a mini 
cost of two dollars and 50 cents ($2.50) f 
pages or less, plus fifteen cents ($0.1 5) per 
additional page. 

(2) The full publication consists of 53 volt 
totaling in excess of 15,000 pages. It is 
plemented monthly with replacement pa; 
one year subscription to the full publicati 
eluding supplements can be purchase 
seven hundred and fifty dollars ($750.0( 
dividual volumes may also be purchased 
supplement service. Renewal subscriptioi 
supplements to the initial publication avai 

Requests for pages of rules or volumes of the 
should be directed to the Office of Administi 
Hearings. 

NOTE 

The foregoing is a generalized statement of tb 
cedures to be followed. For specific statutory lang 
it is suggested that Articles 2 and 5 of Chapter 15 
the General Statutes be examined carefully. 

CITATION TO THE NORTH CAROLINA 
REGISTER 

The North Carolina Register is cited by volume, 
page number and date. 1:1 NCR 101-201, April 1 

refers to Volume 1, Issue 1, pages 101 through 2 
the North Carolina Register issued on April 1, 1 



North Carolina Register. Published bi-monthly by t 
Office of Administrative Hearings, P.O. Drawer 274 
Raleigh, North Carolina 27611-7447, pursuant 
Chapter 150B of the General Statutes. Subscriptic 
one hundred and five dollars ($105.00) per year. 
North Carolina Administrative Code. Published 
looseleaf notebooks with supplement service by t 
Office of Administrative Hearings, PO. Drawer 274 
Raleigh, North Carolina 27611-7447, pursuant 
Chapter 150B of the General Satutes. Subscriptio 
seven hundred and fifty dollars ($750.00). Individi 
volumes available. 



NORTH 
CAROLINA 
REGISTER 



ISSUE CONTENTS 




Office of Administrative Hearings 

P.O. Drawer 27447 

Raleigh, NC 27611-7447 

(919) 733 - 2678 



Julian Mann III, 

Director 
James R. Scarcella Sr., 

Deputy Director 
Molly Masich, 

Director APA Services 



I. PROPOSED RULES 

Economic and Community 
Development 

N.C. Banking Commission 1424 

Environment, Health, and 
Natural Resources 

Health Services 1452 

Human Resources 

Facility Services 1443 

Medical Assistance 1452 

Mental Health, Developmental 
Disabilities and Substance 
Abuse Services 1446 

Independent Agencies 
Housing Finance Agency 1484 

Licensing Board 
Pharmacy, Board of 1480 

State Personnel 
Office of State Personnel 1485 

II. LIST OF RULES CODIFIED 1487 

III. RRC OBJECTIONS 1492 

D/. RULES INVALIDATED BY 

JUDICIAL DECISION 1498 

V. CUMULATIVE INDEX 1500 



Staff: 

Ruby Creech, 

Publications Coordinator 
Teresa Kilpatrick, 

Editorial Assistant 
Jean Shirley, 

Editorial Assistant 



NORTH CAROLINA REGISTER 

Publication Schedule 

(October 1991 - December 1992) 



Issue 


Last Day 


Last Day 


Earliest 


Earliest 


Last Day 


+ 


Date 


for 


for 


Date for 


Date for 


to 


Earliest 




Filing 


Electronic 


Public 


Adoption 


Submit 


Effective 






Filing 


I learing 


by 
Agency 


to 
RRC 


Date 


********+**********+********************++**+**+**#*************+** 


10/15/91 


09/24/91 


10/01/91 


10/30/91 


11/14/91 


11/20 91 


01/02/92 


11/01/91 


10/11 91 


10,18/91 


11/16/91 


1201/91 


12/20 91 


02/03-92 


11/15/91 


10/2491 


10/31/91 


11/30/91 


12 15/91 


12/20/91 


02 03 92 


12/02/91 


11/07/91 


11/14/91 


12 17 91 


01/01/92 


01/20 92 


03/02/92 


12/16/91 


11/21 91 


12 02/91 


12/31/91 


01 '15/92 


01/20/92 


03/02/92 


01/02/92 


12/09/91 


12/16/91 


01/17/92 


02/01/92 


02/20/92 


04/01/92 


01/15/92 


12/20/91 


12:31/91 


01/30.92 


02/14/92 


02/20/92 


04,01/92 


02/03/92 


01/10 92 


01 17/92 


02/18/92 


03 04/92 


03/20/92 


05. 0192 


02/ 14 '92 


01 24 92 


01,31/92 


02.29 92 


03/15/92 


03/20/92 


05,01,92 


03/02/92 


02/10 92 


02 17/92 


03 17 92 


04 01/92 


04/20/92 


0601/92 


03/16/92 


02/24 92 


03/02/92 


03/31/92 


04 15/92 


04/20 '92 


06/01/92 


04/01/92 


03/11/92 


03/18/92 


04,16.92 


05 01/92 


05/20 92 


07 01/92 


04/15/92 


03/25/92 


04/01/92 


(14 30 Q2 


05/15/92 


05/20 92 


07,01,92 


05/01/92 


04/10 92 


04/17/92 


05 16 92 


0531/92 


06/20 92 


08 03 92 


05/15/92 


04 24 92 


05,01/92 


05 30 92 


06' 14/92 


06/20,92 


08/03 92 


06/01/92 


05 11 92 


05/18/92 


06 16 92 


07 01/92 


07/20/92 


09/01/92 


06/15/92 


05/25 92 


06 01/92 


06/30/92 


07 '15/92 


07/2092 


09 01 92 


07/01/92 


06/10 92 


06 ; 17/92 


07,16:92 


07 31/92 


08/20 92 


10 01 92 


07/15/92 


06 24 92 


07.01/92 


07:30 92 


08 '14/92 


08/20/92 


10 01 92 


08/03/92 


07/13 92 


07,20/92 


08 18 92 


09:02/92 


09/20/92 


11 02 92 


08/14/92 


07/24 92 


07,31/92 


08/29/92 


09 '13/92 


09/20/92 


11/02/92 


09/01/92 


08 11 92 


08/18/92 


09/16/92 


1001/92 


10/20/92 


12/01 92 


09/15/92 


08 25 92 


09 01/92 


09.30 92 


10/15/92 


10/20 92 


12 01 92 


10/01/92 


09.10 92 


09 17 92 


10 16 92 


10 31/92 


11/20,92 


01 04 93 


10/15/92 


09/24.92 


10 01/92 


10 30/92 


11/14/92 


11/20/92 


01/0493 


11/02/92 


10/12,92 


10,19/92 


11 17/92 


12/02/92 


12/20/92 


02/01/93 


11/16/92 


10/23/92 


10/30/92 


12/01/92 


12/16/92 


12/20 92 


02/01/93 


12/01/92 


11/06/92 


11/13/92 


12/16/92 


12/31/92 


01/20 93 


03,01/93 


12/15/92 


11/24 92 


12 01/92 


12,30 92 


01 14/93 


01 '20 93 


03 01 93 



* The "Earliest Effective Date" is computed assuming that the agency follows 
the publication schedule above, that the Rules Review Commission approves the 
rule at the next calendar month meeting after submission, and that RRC delivers 
the rule to the Codifier of Rules five (5) business days before the 1st business 
day of the next calendar month. 



PROPOSED RULES 



TITLE 4 - DEPARTMENT OF ECONOMIC 
AND COMMUNITY DEVELOPMENT 

IVotice is hereby given in accordance with G.S. 
1 50 B- 2 1.2 that the North Carolina Banking Com- 
mission intends to adopt rule(s) cited as 4 NCAC 
3C .0807, .1103- .1105; 3H .0102 - .0103; amend 
rule(s) 4 NCAC 3C .080 1 - .0804, .0901, .0903, 
.1001, .1501 - .1502, .1601; 3D .0302 - .0304; and 
repeal rule 4 NCAC 3H .0001. 

1 he proposed effective date of this action is April 
1, 1992. 

1 he public hearing will be conducted at 9:00 
a.m. on February 6, 1992 in Room 6155, Dobbs 
Building, 430 North Salisbury Street, Raleigh, 
North Carolina. 



R 



eason for Proposed Action: 



Adoptions: 

Subchapter 3C (Banks) 

Rule .0807 - Gives banks more specific guidance 
on information which must be provided in an ap- 
plication for approval of a subsidiary. 

Rule .1 103 - Provides a much needed definition of 
capital and determines certainly what constitutes 
impairment of capital stock for statutory purposes. 

Rule .1 104 - Response to a specific requirement at 
G.S. 53-2(4) that the Commission promulgate a 
rule to maintain at least a 50 o/ o capital surplus. 

Rule .1105 - Details for greater certainty the "No- 
tice of Impairment" process required by statute. 

Subchapter 3H (Bank Holding Companies) 

Rule .0102 - Provides a comprehensive application 
process for interstate banking acquisitions pursu- 
ant to statutory requirements. 

Rule .0103 - Provides a comprehensive registration 
for holding companies consistent with statute. 

Amendments: 



Subchapter 3C (Banks) 

Rule .0801 - .0804 - These rules are being amended 
to revise the address and punctuation changes. 

Rule .0901 and .0903 - Permits bank holding com- 
panies to house bank records in view of the in- 



creased frequency of doing business in the holding 
company structure. Additionally, it eliminates an 
inconsistency in the retention requirements at Rule 
.0903 and relocates a reference to trust records to 
Subchapter 3D which deals with the regulation of 
trust departments. 

Rule .1001(3) - Clarifies that an appraisal must 
identify a specific loan transaction for greater 
certainty. 

Rule .1001(5) - Clarifies that a "stock power" must 
be in place for each stock certificate held as 
collateral. 

Rule .1501(c) - Utilizes a reference to 
"depository" financial institutions consistent with 
current federal loan regulation. 

Rule .1502(1) - Adds our address for purposes of 
notification. 

Rule .1601(19) - Responds to the requirement that 
the Commission set by Rule fees for its various 
application processes. 

Subchapter 3D (Trust) 

Rule .0302(k) - Consistent with changes in federal 
regulation, this revised Rule will allow transactions 
between trust accounts under certain circum- 
stances. 

Rule .0303 - Clarifies that a bank engaged in the 
trust business must maintain a permanent record 
of surcharges and such charges of one thousand 
dollars {$1 ,000) must be approved by the trust 
committee. 

Rule .0304 - In order to operate more consistently 
with national bank regulation of trust depart- 
ments, this Rule now simply make a cross- 
reference to 12 C.F.R. 9.18 with regard to 
common trust funds. 

Repeals: 

Subchapter 311 (Bank Holding Companies) 



Rule .0001 - It is being repealed and replaced by 
Rules 3H .0/02 and .0103. 



Cc 



omment Procedures: Comments must be sub- 
mitted in writing not later than Monday. February 
3, 1992. Written comments should be directed to: 
L. McNeil Chestnut, General Counsel 
North Carolina Banking Commission 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



1424 



PROPOSED RULES 



Post Office Box 29512 
Raleigh, Xorth Carolina 27626-0512. 

CHAPTER 3 - BANKING COMMISSION 

SUBCHAPTER 3C - BANKS 

SECTION .0800 - MISCELLANEOUS REPORTS 
AND APPROVALS 

.0801 OATH OF DIRECTORS 

Form 2 incorporates a statutory oath required 
to be executed by each director of a state bank. 
The form requires the signature under oath of 
each director and his address. It must be exe- 
cuted in duplicate annually within 30 days after 
the election of a director. The forms can be ob- 
tained from and one copy must be filed with: 
44** Commissioner (4 Banks 

Ral e igh. North Carolina 27602. 

The Commissioner of Banks 

430 N. Salisbury- Street 

Dobbs Bld.g. Box 29512 

Raleigh. N.C. 29626-0512 



Statutory Authority 
150B-1K1). 



G.S. 53-80; 53-81; 53-92 



.0802 DEPOSITORY BANKS 

Form 3 contains a request to the Commissioner 
of Banks to approve the proposed depositories 
of a bank. It is required to be fded in duplicate 
annually by the board of directors of each state 
bank. The form may be obtained from and 
should be fded with: 

44*e Commissioner ef Banks 

Raleigh. North Carolina 27602. 

The Commissioner of Banks 

430 N. Salisbury- Street 

Dobbs Bide. Box 29512 

Raleigh. N.C. 29626-0512 



Statutory A uthority 
150B-ll'(l). 



G.S. 53-84; 53-92; 



.0803 OTHER REAL ESTATE 

Form 16- A contains a request for the Commis- 
sioner of Banks to approve holding for one year 
real estate acquired by foreclosure, etc., that had 
not been disposed of by the end of the previous 
year. It is required to be fded in duplicate an- 
nually by the board of directors of any state bank 
owning such real estate. The form may be ob- 
tained from and should be fded with: 
44*? Commissioner ef- Banks 

Raleigh. Xf*4k Carolina 27602. 



The Commissioner of Banks 
430 N. Salisbury Street 
Dobbs Bids. Box 29512 



Raleigh, N.C. 29626-0512 



Statutory Authority 
I50B-1K1). 



G.S. 53-43- ( 3 jc; 53-92; 



.0804 SUSPENSION OF INVESTMENT 
AND LOAN LIMITATION 

Form 17 contains a request for the Commis- 
sioner of Banks to approve the suspension of a 
bank's investment limitation or its loan limita- 
tion to a particular borrower for a penod of 120 
days. The form incorporates the required resol- 
ution of the bank's board of directors and must 
be accompanied by financial statements of the 
borrower(s) and must be fded in triplicate. This 
report and the information contained therein is 
confidential and neither the report nor any of its 
contents shall be made available to the public. 
The form may be obtained from and fded with: 
44*e Commissioner »f Banks 

P O R n i f OSl 

i . y.j . ITU n. .'.'i 

Raleigh, North Carolina 27602. 

The Commissioner of Banks 

430 N_ Salisbury- Street 

Dobbs Bldg. Box 29512 

Raleigh, N.C. 29626-0512 



Statutory Authority G.S. 53-49; 
150B-li(l). 



53-92; 53-99; 



.0807 SUBSIDIARY INVESTMENT 
APPROVAL 

Banks that desire to create or invest in a corpo- 
ration, partnership, linn or other company which 
will engage in business not closely related to 
banking and which shall be cither partialis- or 
wholly owned hv the bank must first obtain the 
approval of the Commissioner of Banks. The 
application for approval shall be by letter which 
must include the following: 

( 1 ) A copy of the articles of incorporation, ar- 
ticles of partnership or other instrument 
creating or governing the business entity; 

(2) A description of the proposed activities and 
by whom these activities will be conducted; 

(3) The proposed investment in the enterprise 
expressed both in dollar amount and as a 
percentage of the bank's unimpaired capital 
funds: 

(4) The amount of the bank's investment in all 
existing subsidiaries, partnership and com- 



panies as of the date of the letter of applica- 
tion: 
(5) The amount of the bank's unimpaired 
capital fund on the date of the letter of ap- 



1425 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



PROPOSED RULES 



plication as the same is defined at G.S. 
53-1(9); 

(6) A copy of any contract or agreement for a 
lease, rental or other commitment by the 
enterprise that would create a contingent h^ 
ability upon the firm (or the bank); 

(7) Copies of any licenses or other permits 
which the enterprise or its employees are re- 
quired to obtain prior to engaging in a reg- 
ulated activity. If such licenses are not 
available on the date of the letter of appli- 
cation the same must be submitted prior to 
final approval; and 

(8) The application fee as determined by 4 
NCAC 3C .1601(a)(8). 

Statutory Authority G.S. 53-47; 53-104; 
150B-1I(1). 

SECTION .0900 - OPERATIONS 

.0901 BOOKS AND RECORDS 

Each bank, or its parent holding company, shall 
keep in permanent form, and available for ex- 
amination by the representatives of the Com- 
missioner of Banks, books and records which 
reflect all the transactions of the bank in its true 
financial condition. Such records shall be so kept 
as to permit and facilitate a speedy examination, 
which will, in turn, reflect such financial condi- 
tion to the representatives of the Commissioner 
of Banks. Without implying that these are the 
only books and records to be kept, but, on the 
contrary, that these are necessary books and re- 
cords, as well as other books and records usually 
kept, the following are required to be kept » at 
the bank, or at its parent holding company, un- 
less another storage site is approved by the 
Commissioner of Banks: 
(1) Each commercial bank or branch thereof 
in which notes or other forms of similar ob- 
ligations are retained must keep an alpha- 
betical liability ledger. The direct liability 
ledger must be kept in balance with the 
general ledger control. In a commercial 
bank whose automated record system is not 
able to produce an alphabetical liability led- 
ger the bank must be able to produce an al- 
phabetical listing of borrowers showing all 
of a customer's loan or customer account 
numbers and the amount outstanding under 
each number when called upon by the 
Commissioner of Banks or his duly author- 
ized agent. In addition to the direct liability 
ledger, each commercial bank or branch 
thereof in which notes or other forms of 
similar obligations are retained must keep 
an alphabetical indirect liability ledger 



showing a customer's indirect obligations by 
loan name or account number and the bal- 
ance outstanding under each account. 
Where the total of the direct and indirect 
lines do not exceed ten thousand dollars 
($10,000), the indirect line may be omitted 
from the indirect liability ledger. The indi- 
rect liability ledger must be updated at least 
monthly. Each commercial bank shall have 
the ability to produce both the direct and 
indirect liability ledgers in hard copy form 
upon call by the Commissioner of Banks or 
his duly authorized agent. 

( 2) Records A p e rman e nt reconcilement record 
must be kept, showing the monthly recon- 
ciliation of each account with correspondent 
banks. A signed review of such reconcil- 
iations must be made by some officer or 
employee of the bank other than the person 
composing same. 

(3) A permanent record must be kept of all 
stocks and bonds bought or sold. Also, 
there must be retained for review by exam- 
iners all original invoices of purchases and 
sales of securities. The record must show 
dates of purchases and sales, interest rates, 
maturities, par value, cost value, all write- 
ups or write-downs, a full description of the 
security, from whom purchased, to whom 
sold, selling price, and when, where and why 
pledged or deposited. This record must be 
maintained in balance with the general led- 
ger control. 

(4) A permanent record must be kept of all 
articles deposited for safekeeping. This re- 
cord must be maintained so as to make it 
possible to easily verify or trace any article 
deposited. Receipts must be given and 
taken for all articles deposited or delivered. 
An inventory of parcels is not required. 

(5) A permanent record must be kept of all 
items charged off. All chargeoffs must be 
authorized or approved by the executive 
committee or by the board of directors and 
such action recorded in their minutes. This 
record, among other things, must show the 
date of the chargeoff, a description of the 
asset and the amount. The record must be 
supported by the actual charged off items, 
or the final disposition of any item. In this 
record must also be recorded all recoveries, 
giving dates and amounts. This Rule shall 
t4s» apply t» trust d e partm e nt chargeoffs 
which may be authorized aft4 approved by 
the trust committee ef t4*e board e( diroc 

(6) A real estate record must be kept on all 
parcels owned, including the banking house. 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



1426 



PROPOSED RULES 



This record must show when, from whom, 
and how the property was acquired; date, 
cost price, book value, detailed income and 
detailed expenses. This record should be 
supported by appraisals, title certificates 
showing assessed value, tax receipts, and in- 
surance policies. 

(7) Proper minutes, showing clearly its action, 
must be kept for each committee, board of 
directors, board of managers, and stock- 
holders' meetings. All minutes must be 
signed by the chairman and the secretary of 
this meeting. 

(8) A permanent daily record must be kept of 
all cash items held over from the day's busi- 
ness, including all checks that would cause 
an overdraft if handled in the regular way. 
This record must show the name of the ac- 
count on whom the item is drawn or is ob- 
ligated for payment, the reason the item is 
being held, the date the item was placed in 
the cash items account, and the amount of 
the item. This record must be a daily record 
showing only those items held over at the 
end of each day's business and be kept in 
balance with the general ledger or control 
figure. 



(9) A detailed record of income and expenses 
must be kept, balanced monthly, and a 're- 
port thereof made to the executive commit- 
tee or board of directors, and the receipt of 
same noted in their minutes. 

(10) In the discretion of the Commissioner of 
Banks, he may require the preparation or 
maintenance of further books or records by 
specific banks or branches thereof. 

(11) Each industrial bank, when preparing a 
report of condition and income, must in- 
clude and make a part of this report a list 
of those whose obligations to the bank, 
whether the obligations are direct or indirect, 
and including paper purchased by the bank, 
are in excess of ten percent of capital, sur- 
plus and undivided profits. In lieu of this 
list, the bank must maintain a liability ledger 
in accordance with Subsection (1) of this 
Rule. Any commercial bank making in- 
stallment loans may, with reference to such 
installment loans, make the report specified 
in this section in lieu of the liability ledger 
required under Subsection (1) of this Rule. 



Statutory Authority 
ISOB-lI(l). 



G.S. 53-92; 53-110; 



.0903 RETENTION: REPRODUCTION AND DISPOSITION OF BANK RECORDS 

(a) Each bank or branch thereof shall keep and retain in some safe and secure place the books, led- 
gers, records, and documents hereinafter set forth for the periods specified. 



Bank Records to 
be Retained 



Minimum 
Retention Period 



ACCOUNTING 



1. Daily Reserve Calculation and Averages 

2. Difference Records (Over, Short) 

3. Paid Bills and Invoices 

4. Quarterly Report of Condition and Income 
and Supporting Work Papers 



3 years 

2 years 

3 years 

5 years 



ADMINISTRATIVE 



1. Documentation of Charged-off Assets 

2. Escheat Reports and Records 

3. Minute Books of Meetings of Stockholders. 
Directors, and Executive Committee 



10 years 
10 years 

Permanent 



AUDIT 



Audit Reports (Internal and External) 
and Directors' Examinations 
Audit Work Papers (Internal) 



3 years 
3 years 



BANK PROPERTIES 



1427 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



PROPOSED RULES 



1. Fixed Assets-Evidence of Ownership (After 
Acquisition) 

2. Fixed Assets- Leases (After Termination) 

3. Real Estate-Construction Records 

4. Real Estate-Deeds 

5. Real Estate-Leases (After Termination) 

CAPITAL 



5 years 
5 years 
5 years 

L'ntil conveyed 
5 years 



1. Capital Stock Certificate Books, Stubs, 
or Interleaves 

2. Capital Stock Ledger 

3. Capital Stock Transfer Register 

4. Proxies 



Permanent 
Permanent 
Permanent 
3 years 



COLLECTIONS 



1. Collection Registers (Incoming and 
Outgoing) 



2. Receipts and Advices (After Closed) 
CREDIT CARDS 



3 years after 
item paid or 

returned 
1 year 



1. Borrowing Authority Resolutions (After 
Closed) 

2. Customer Application (After Closed) 

3. Disclosure and Compliance Documents 

4. Merchants' Agreement (After Closed) 

5. Posting or Transaction Journal 

6. Sales Tickets or Drafts 

7. Statement of Account 



3 years 

1 year 

25 months 

2 years 

2 years 

3 years 
5 years 



DEMAND DEPOSIT AND TRANSACTION ACCOUNTS 



1. Checks and Debits 

2. Daily Report on Overdrafts 

3. Deposit Resolutions (After Closed) 

4. Deposit Tickets and Credits 

5. Ledgers, Statements, or Stubs 

6. Letters of Administration 

7. Posting or Transaction Journals 

8. Powers of Attorney 

9. Return Item Records 

10. Signature Cards (After Closed) 

11. Stop Payment Orders 

12. Tax Waivers 

13. Undelivered Statements 

14. Unidentified or Unclaimed Deposit Records 



5 years 

2 years 

3 years 
5 years 
5 years 
5 years 
2 years 
5 years 
1 year 
5 years 
1 year 

1 year 
1 year 
L'ntil escheated 



DUE FROM BANKS 

1 . Advise of Entry (After Cleared) 

2. Drafts (After Paid) 

3. Draft Register or Carbon Copy 

4. Reconcilements 

5. Statements 



3 months 
5 years 
Until paid 
^5 years 
3 years 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



142S 



PROPOSED RULES 



CENTRAL LEDGER 

1 . Daily Statement of Condition 

2. General Journal (If Book of Original 
Entries, with Descriptions) 

3. General Ledgers 

4. General Ledger Tickets 

INSURANCE 

1. Bankers Blanket Bond and Excess 

2. General Casualty Liability Policies 
Expired 

INTERNATIONAL 



1. Bankers Acceptances 

2. Collection Records 



3. Letters of Credit and Documents 

4. Transfer Orders (Wire or Written) 

INVESTMENTS 

1. Accrual and Bond Amortization or 
Accretion Records (After Penod Ends) 

2. Brokers' Confirmations, Invoices, 
Statements 

3. Ledgers 

LEASE RECEIVABLES (OTHER THAN REAL ESTATE) 

1. Lease Agreements and Documents (After 
Termination) 

2. Rental Payment Records 

3. Record of Disposition of Property 

LEGAL JUDICIAL AUTHORIZATION 

1. Attachments and, or Garnishments 

2. Court Case Records (After Final 
Disposition) 

3. Probate Court Appointment (After 
Closed) 

LOANS (COMMERCIAL. CONSUMER, MORTGAGE) 

1. Appraisals, Financing Statements, and 
Title Opinions Pertaining to Collateral 

2. Borrowing Resolutions 

3. Credit Files (Financial Statements, 
Applications, Correspondence) (After Paid) 

4. Collateral Records (After Released) 

5. Interest Rebate Records 



5 years 

15 years 
15 years 
5 years 



5 years 
5 years 



3 years 

3 years after 

item paid or 

returned 
3 years after 

expiration 
1 year 



3 years 

3 years 
3 years 



5 years 
5 years 
5 years 



10 years 
10 years 
10 years 



Until paid 
3 years after 
payment of debt 

2 years 
5 years 
1 year 



1429 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



PROPOSED RULES 



6. Liability Cards and/or Ledgers (After 
Closed) 

7. Loan Ledger Cards or History Sheets 
(After Paid) 

8. Loan Proceeds Disbursement Records 

9. Loans Paid Record 

10. Mortgage Files and Supporting Documents 
(After Paid) 

11. Note and/or Loan Register (After Paid) 

12. Posting or Transaction Journal 



3 years 

3 years 
Until paid 
3 years 

2 years 

3 years 
2 years 



MAIL 



1. Insurance Records of Registered and 
Certified 

2. Registered and Certified Records 
(In and Out) 

3. Return Receipt Record 



1 year 

1 year 
1 year 



MISCELLANEOUS 



1. Cash and Security Vault 
Records-Opening, Closing 

2. Taxes- Returns and Supporting Papers 



3. Travelers Checks-Applications 
MONEY TRANSFER 



6 months 
3 years or until 
cleared by IRS 
and Dept. of 

Revenue 
1 year 



1. Copy of Incoming and Outgoing Transfers 

2. General Correspondence 

3. Receipts and Advices (After Closed) 

4. Transfer Request Records 

NIGHT DEPOSITORY 

1. Customer Agreement (After Closed) 

2. Customer Receipt 

3. Daily Inventory 

OFFICIAL CHECKS 



1 year 
1 year 
1 year 
1 year 



1 year 
1 year 
1 year 



1. Official Checks (Dividend, Cashiers, 
Expense, Loan) and Money Orders 
(After Paid) 

2. Official Check Register or Carbon Copy 

3. Certified Checks or Receipts 
(After Paid) 

4. Certified Check Register or File Copy 

5. Affidavits and Indemnity pertaining 
to Issuance of Duplicate Checks 



5 years 
Until paid or 
escheated 

5 years 
Until paid or 
escheated 

Permanent 



PROOF AND TRANSIT 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



1430 



PROPOSED RULES 



1. Advice of Correction 

2. Cash Tickets 

3. Outgoing Cash Letters and Accompanying 
Items (Microfilm) 

4. Proof Sheets, Tapes, and Listings 

SAFE DEPOSIT 

1 . Access Records (After Closed) 

2. Box History Card 

3. Contracts and Agreements (After Closed) 

4. Forced Entry Records 

SAFEKEEPING AND CUSTOMER SECURITIES 

1. Broker Confirmations, Invoices, Statements 

2. Buy and Sell Orders 

3. Customer Contracts and Agreements 
(After Closed) 

4. In and Out Records (Movement of Securities) 

5. Safekeeping Receipts (After Closed) 

SAVINGS AND TIME DEPOSITS 



6 months 
6 months 

2 years 
2 years 



3 y r ears 
Permanent 

3 years 
10 years 



3 years 
3 years 

3 years 
3 years 
3 vears 



1. Certificates of Deposit Paid 

2. Certificates of Deposit Records 
(Register, Ledger, Copy) 

3. Daily Report of Overdrafts 

4. Debits and Withdrawals 

5. Deposit and Credit Tickets 

6. Deposit Resolution (.After Closed) 

7. Ledgers or Statements 

8. Posting or Transaction Journal 

9. Signature Cards, Contracts, and Agreements 
(After Closed) 

10. Undelivered Statements 

1 1 . Unidentified or Unclaimed Deposit Records 

TELLERS 



5 years 

Until paid or 
escheated 

2 years 
5 years 
5 years 

3 years 
5 years 
1 year 

5 years 
1 year 
Until escheated 



1. Balance Sheets, Recaps, or Records 

2. Cash Item Report 

3. Machine Tapes, Cash Ticket Copies, 
Posting or Transaction Journals 



1 year 
1 year 

6 months 



TRUST (Corporate) 

1 . Account Ledger or Record 

2. Posting or Transaction Journal 

3. Bonds of Indemnity 

4. Stock Certificates (Cancelled) 

5. Dividend Checks -- Paid 

6. Dividend Check Register or Carbon Copy 

7. Bonds and Coupons -- 
Cancelled or Cremation Certificates 



7 years after 
account closed 

7 years 
Permanent 
until returned to 
corporation 

5 years 
Until paid 

7 years after 

paid or until 



1431 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



PROPOSED RULES 



8. Resolutions and Authorizations 

TRUST (Employee Benefit) 

1. Accountings 

2. Agreements, Authorizations and 
Resolutions 

3. Account Ledger or Record 

4. Disbursement Checks 

5. Check Register or Carbon Copy 

6. Bonds of Indemnity 

TRUST (Personal) 

1. Accountings 

2. Agreements and Authorizations 

3. Account Ledger or Record 

4. Minutes of Committee Meetings 

5. Receipts for Assets Delivered 

6. Tax Return 

7. Disbursement Checks 

8. Check Register or Carbon Copy 

9. Bonds of Indemnity 



returned to 

corporation 

7 years after 

account closed 



6 years after 
account closed 
6 years after 
account closed 
6 years after 
account closed 
6 years 
Until Paid 
Permanent 



3 years after 
account closed 

5 years after 
account closed 

7 years after 
account closed 
Permanent 

3 years after 
account closed 
10 years or 
until IRS clears 

5 years 
Until paid 
Permanent 



(b) Nothing in these Rules shall prohibit any bank or branch thereof from keeping and maintaining 
any and all of its records for a longer period of time than the minimum time set forth as the minimum 
retention period. 

(c) Paragraph (a) of this Rule sets forth state minimum records retention requirements and does not 
necessarily include nor cover records required to be kept by federal agencies such as federal bank su- 
pervisory agencies, wage hour, and other federal agencies. Banks will also observe the requirements 
of such federal agencies in retention of records required by such agencies. 

(d) Nothing in these Rules shall prohibit any bank or branch thereof from causing any or all of its 
records, whether permanent records or records designated to be retained for a minimum period of time, 
to be recorded, copied, or reproduced by any photographic, photostatic, or miniature photographic 
process which is in common and general use and which correctly, accurately, and permanently copies, 
reproduces, or forms a medium for copying or reproducing the original records on a film or other du- 
rable material as provided by Paragraph (4) of Subsection (b) of G.S. 53-1 10, as amended. 

Statutory Authority G.S. 53-92; 53-104; 53-110; 150B-11(I). 



SECTION .1000 - LOAN ADMINISTRATION 
AND LEASING 

.1001 CREDIT INFORMATION 

Each bank or branch thereof where notes are 
retained must have the following information: 
(1) Current financial statements, dated within 
the preceding 18 months, and properly cer- 



tified, must be on file from those directly li- 
able to the bank in an amount of ten 
thousand dollars ($10,000.00) or more, 
which obligations are unsecured, to the ex- 
tent often thousand dollars ($10,000.00), or 
secured only by endorsements. This applies, 
also, to the endorser where such endorse- 
ments are the basis of credit. 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



1432 



PROPOSED RULES 



(2) This Subpart does not apply to loans se- 
cured by real property: 

(a) A written appraisal of all collateral to loans 
must be made by the executive committee 
or loan committee of the bank or branch, 
or other reliable persons familiar with the 
value of the collateral, and must be kept 
on file where the note is lodged. All ap- 
praisals must be renewed even" 12 
months, except as required in (2)(d) of 
this Rule. 

(b) The appraisal must include: 
(i ) name of borrower, 

(ii) date made, 

(in) value of collateral, 

(iv) signatures of at least two persons mak- 
ing the appraisal except as permitted in 
(2)(e) of this Rule. 

(v) brief description of collateral, 

(vi) amount of prior lien, 

(vii) original amount or outstanding bal- 
ance of the loan. 

(c) No appraisal is required: 

(i) on collateral to notes of less than twenty 
thousand dollars ($20,000.00): 

(u) on loans fully secured by obligations of 
the United States or the State of North 
Carolina; 

(iii) on loans fully secured by deposits in the 
bank making the loan: 

(iv) on loans fully secured by the cash sur- 
render or loan value of life insurance pol- 
icies; 

(v) on loans fully secured by bonded ware- 
house receipts; 

(vi) on loans fully secured by listed securi- 
ties, unless such loans are within the pro- 
visions of the Securities Exchange Act of 
1934 as defined by Regulation "U," as 
amended, of the Board of Governors of 
the Federal Reserve System; On a loan of 
this type, an appraisal must be made and 
kept on file until the loan is paid: 

(vii) on floor plan loans to dealers fully se- 
cured by new automobiles, stationwagons, 
vans, and trucks: 

(viii) on discounted notes for a dealer where 
the note is given as the purchase price of 
an automobile, television set, washing 
machine, or property of a like character. 

(d) Appraisals need not be renewed annually: 
(i) where an automobile, stationwagon. or 

housetrailer is the sole collateral to a loan; 
(ii) where a truck or van not exceeding 
8.000 pounds empty weight is the sole 
collateral to a loan. 

(e) Appraisals may be signed by only one 
person: 



(i) where an automobile or stationwagon is 

the sole collateral to a loan; 
(ii) where a truck or van not exceeding 

8,000 pounds empty weight is the sole 

collateral to a loan. 

(3) All real estate given as security to loans of 
twenty thousand dollars ($20,000.00) or 
over, whether directly or indirectly pledged, 
must be appraised either by two members 
of the executive or loan committee who are 
familiar with real estate values in the com- 
munity where the property is located, or by 
two bank employees who are familiar with 
real estate values in the community where 
the property is located and who are not in- 
volved in the loan transaction secured by the 
property being appraised, or singularly by a 
State-licensed real estate appraiser or State- 
certified real estate appraiser or a person 
certified as a real estate appraiser by an ap- 
praisal trade organization. The person 
making an appraisal as provided by this 
Rule must be selected by the bank. The 
appraisal must be independent in that the 
appraiser is not involved in the loan trans- 
action secured by the property being ap- 
praised and has no interest, financial or 
otherwise, in the property. The appraisal 
must be in writing, must be dated, must be 
signed as required in this Subparagraph by r 
the person(s) making the appraisal, and be 
on file with the loan documents. The ap- 
praisal must state the basis or approach used 
to determine the value of the property. A 
bank's appraisal form must show the 
amount »f A<? loan, identify the loan trans- 
action for which the appraisal was made, the 
current balance of a»v prior Hens, if anv, 
disclosed by the attorney's title certificate, 
segregate values of improvements from val- 
ues of land, and describe the property so it 
may be easily identified. If a professional 
appraisal form is used which does not have 
all of the required information in this Sub- 
paragraph, the bank must complete and at- 
tach its own appraisal form, signed by one 
of its employees, to the outside appraisal re- 
port disclosing the required information. 

(4) For loans secured by real property, a cer- 
tificate of title furnished by a competent at- 
torney at law or title insurance issued by a 
company licensed by the Commissioner of 
Insurance must accompany each deed of 
trust or mortgage given as security on loans 
of twenty thousand dollars ($20,000) or 
over. Provided that any loan which is based 
primarily on the borrower's general 
creditworthiness and projected income, 



1433 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



PROPOSED RULES 



whether or not accompanied by a deed of 
trust or mortgage, is not considered a loan 
secured by real property, and the first sen- 
tence of this Subparagraph shall not apply 
to any such loan. 

(5) Where stock certificates, or similar securi- 
ties, are accepted as collateral to loans, they 
each certificate must be endorsed and wit- 
nessed in ink, or accompanied by a stock 
power ©f attorney signed and witnessed in 
ink. Where such collateral is in the name 
of another, other than the maker or endorser 
of the note, there must be on file in the bank 
written authority from the owner permitting 
the hypothecation of the collateral. 

(6) Loans made directly to corporations must 
be supported by certified copies of resol- 
utions of the board of directors of the cor- 
poration, authorizing the making of such 
loans. 

(7) Loans made directly to partnerships must 
be supported by a declaration by the part- 
ners showing the composition of the part- 
nership and unless all partners sign the note, 
the authority of the partner(s) executing the 
note to bind the partnership. 

(8) Full credit information on all unlisted se- 
curities, now owned or hereafter purchased 
or acquired, must be secured and kept on file 
in the bank. 

Statutory Authority G.S. 53-92: 53-110; 
150B-11(1). 

SECTION .1 100 - CAPITAL 

.1103 CAPITAL STOCK 

(a) Definition. For the purpose of this Section, 
the terms capital stock and common capital stock 
shall be considered one and the same and shall 
consist of the par value of all classes of common 
stock times the number of shares issued and 
outstanding. 

(b) Par Value. All classes of common stock 
issued by a bank shall have a stated par value. 

(c) Impairment. A banks capital stock will 
be deemed impaired when the payment of ex- 
penses, losses or other charges to its capital ac- 
counts shall reduce the banks total equity capital 
to an amount less than its capital stock. 

Statutory Authority G.S. 53-l(3)d; 53-2(4); 
53-42; 53-104; 150B-11(1). 

.1 104 MAINTENANCE OF CAPITAL SURPLUS 

Each bank doing business under Chapter 53 
shall at all times maintain a paid in surplus of not 



less than 50 percent of common capital stock as 
the same is defined at 4 NCAC 3C .1 103(a). 

Statutory Authority G.S. 53-2(4); 53-104; 
1S0B-11(1). 

.1 105 NOTICE OF IMPAIRMENT 

The Commissioner of Banks will notify by cer- 
tified mail the Chairman of the Board of any 
bank whose capital has become impaired pursu- 
ant to 4 NCAC 3C .1103(c). The impairment 
must be made good within 60 days of receipt of 
the notice by assessment upon the shareholders 
and a special meeting of shareholders must be 
immediately called for that purpose. A copy of 
the notice of the shareholders' meeting must be 
provided to the Commissioner of Banks. Im- 
mediately following this special meeting, the sec- 
retary of the board shall provide the 
Commisssioner with a copy of the minutes which 
must reflect the amount of assessments and time 
within which the same must be paid together 
with an indication of the steps which the board 
will take to collect any assessment which is not 
timely paid. 

Pursuant to G.S. 53-42. the Commissioner of 
Banks may immediately take possession of a 
bank which has not paid in the deficiency in its 
capital stock. 

Statutory Authority G.S. 53-42; 53-104; 
150B-11(1). 

SECTION .1500 - AUTOMATION AND DATA 
PROCESSING 

.1501 CUSTOMER-BANK COMMU- 
NICATION TERMINALS 

(a) A state bank may make available for use 
by its customers one or more electronic devices 
or machines through which the customer may 
communicate to the bank a request to withdraw 
money either from his account or from a previ- 
ously authorized fine of credit, or an instruction 
to receive or transfer funds for the customer's 
benefit. The device may receive or dispense cash 
in accordance with such a request or instruction, 
subject to verification by the bank. These de- 
vices may be unmanned or manned by a bona 
fide third party under contract to the bank. The 
bank for a reasonable period of time may provide 
one of its employees to instruct and assist cus- 
tomers in the operation of the device. Any 
transactions initiated by such a device shall be 
subject to verification by the bank either by di- 
rect wire transmission or otherwise. 

(b) Use of such devices at locations other than 
the main office or a branch office of the bank 
does not constitute branch banking. A bank 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



1434 



PROPOSED RULES 



shall provide insurance protection under its 
bonding program for transactions involving such 
devices. 

(c) No device for which notice must be given 
under this Rule may be established or used by a 
state bank at a distance greater than 50 miles 
from the bank's main office or closest branch, 
whichever is nearer, unless such device or ma- 
chine is available to be shared at a reasonable 
cost by one or more local (i.e., within the trade 
area of the device or machine) depository finan- 
cial institutions authorized to receive deposits. 
ouch a* a comm e rcial bank, a savings a»d loan 
association, ©f a credit union. 

(dj Written notice must be given to the Com- 
missioner's office 30 days before changing any of 
the operations described in a notice previously 
given pursuant to this Paragraph. One or more 
state banks sharing one or more devices or ma- 
chines may give a single notice to the Commis- 
sioner's office, provided that the notice includes 
the information listed in Subparagraph (1) of 
Rule . 1 502 of this Section for each shared device 
or machine. The Commissioner reserves the 
right to adopt different reporting procedures as 
warranted by the circumstances of a particular 
network of devices or machines. 

(e) No notice need be given for any device or 
machine which is used only to transfer funds for 
goods or services received, and through which 
neither cash is dispensed nor cash or checks left 
for subsequent deposit; is used solely to verify a 
customer's credit for purposes of check cashing 
or of a credit card transaction; or is a part of a 
bank's authorized main office or branch. 



Statutory Authority G.S. 
ISOB-ll(I). 



53-62; 53-92; 53-104; 



.1502 LIMITATIONS 

The establishment and use of these devices is 
subject to the following limitations: 

( 1) Contents of Notice. Written notice must 
be given to the Commissioner of Banks' of- 
fice 30 days before any such device is put 
into operation and mailed to 



The Commissioner of Banks 

430 N. Salisbury Street 

Dobbs Bldg. Box 29512 

Raleigh. North Carolina 27626-0512 

The notice must desenbe with regard to the 

device or machine: 

(a) the location; 

(b) a general description of the area where it 
is located— e.g., shopping center, gasoline 
station, supermarket— and the manner of 
installation-e.g., free standing, exterior 
wall, separate interior booth; 

(c) the manner of operation, including 
whether the device is on-line; 

(d) the kinds of transactions which will be 
performed; 

(e) whether the device will be manned, and, 
if so, by whose employees; 

(f) whether the device will be shared, and, if 
so, under what terms and with what other 
institutions and their locations; 

(g) the manufacturer and, if owned, the pur- 
chase price or, if leased, the lease pay- 
ments and the name of the lessor; 

(h) the distance from the nearest banking of- 
fice and from the nearest similar device of 
the reporting bank; 
(i) the distance from the nearest banking office 
and nearest similar device of another 
commercial bank, which will not share the 
facility, and the name of such other bank 
or banks: and 
(j) consumer protection procedures, including 
the disclosure of rights and liabilities of 
consumers and protection against 
wrongful or accidental disclosure of con- 
fidential information. 
(2) To the extent consistent with the antitrust 
laws, state banks are permitted, but not re- 
quired, to share such devices with one or 
more financial institutions. 



Statutory Authority 
150D-ll(l). 



G.S. 53-62; 53-92; 53-104; 



SECTION .1600 - FEES 



.1601 FEES, COPIES AND PUBLICATION COSTS 

(a) For applications, petitions, and other proceedings which must be filed with the Commissioner 
of Banks the following fees shall be paid to the Commissioner at the time of tiling: 



(1) 
(2) 
(3) 

(4, 

(5) 



Application for the Formation of a New Bank 
Application for Authority to Decrease Capital Stock 
Application to Merge or Consolidate Banks (fee is per bank) 
Application for Reorganization Into a Bank Holding Company Through 
an Interim Bank (fee is per bank) 
Application for Reorganization 



10,000.00 

250.00 

4,000.00 

4,000.00 
4.000.00 



1435 



6: 1 9 NOR TH CAROLINA REGIS TER January 2, 1 992 



PROPOSED RULES 



(6) Application for Conversion of a National Bank to State Charter $ 5,000.00 

(7) Application for Voluntary Liquidation $ 3,000.00 

(8) Application for Authority to Create and Invest in a Subsidiary $ 750.00 

(9) Application for Approval of Change in Bank Control or Management $ 1,000.00 

(10) Petition for Authority to Exceed Investment or Loan Limitations $ 250.00 

(11) Application for Authority to Establish a Branch Bank $ 1,000.00 

(12) Application for Authority to Relocate a Main Office or Branch $ 750.00 

(13) Application for Authority to Create a Limited Service Facility $ 1,000.00 

(14) Application for Authority to Convert a Branch to a Limited Service Facility $ 500.00 

(15) Authority to Close a Branch $ 1,000.00 

(16) Request for Replacement Charter Certificate $ 25.00 

(17) Request for Certificate of Good Standing $ 25.00 

(18) Application for Conversion of a Savings and Loan Association to a State Bank $ 7,500.00 

(19) Application to Form a Nondepository Trust Company $ 10,000.00 

(b) The fees set forth in Paragraph (a) of this Rule are for standard applications, petitions, and other 
proceedings filed and considered in the ordinary course of business. Any application, petition or other 
proceeding which in the opinion of the Commissioner of Banks requires extraordinary review, investi- 
gation or special examination will be subject to additional expenses at an hourly rate to be determined 
annually by the Banking Commission. The Commissioner of Banks will advise an applicant or 
petitioner in advance of any additional work required and the hourly rate for the same. 

(c) Publications available through the Banking Commission and copies of public records may be 
obtained at the following costs. 

(1) Publications: 

. (A) Annual Report of Consumer Finance Licensees $ 4.00 

(B) Annual Report of State-chartered Banks $ 5.00 

(C) Annual Report of Special Services $ 3.50 

(D) North Carolina Administrative Code - Chapter 3 Banking Commission and 

Related Regulations $ 7.50 

(E) Annual Subscription for Official Notice- Maximum Rate of Interest 

Allowed on Certain Loans $ 10.00 

(2) Copies of public records: one dollar ($1.00) per page. 

(d) Any new publication or any publication not set forth in Subparagraph (c)(1) of this Rule may 
be purchased at a price of twenty-five cents ($0.25) per page. 

Statutory Authority G.S. 53-92; 53-122(3); 150B-ll(l). 

SUBCHAPTER 3D - BANKS ACTING IN A 
FIDUCIARY CAPACITY 

SECTION .0300 - TRUST DEPARTMENT 

.0302 ADMINISTRATION OF FIDUCIARY 
POWERS 

(a) The trust department shall be separate and 
apart from every other department of the bank. 
The trust department may utilize personnel and 
faculties of other departments of the bank and 
other departments of the bank may utilize the 
personnel and faculties of the trust department 
only to the extent not prohibited by law. 

(b) Board of Directors 
(1) The Board of directors is responsible for 

the proper exercise of fiduciary powers by (2) 

the bank. All matters pertinent thereto, 
including the determination of policies, 
the investment and disposition of property 
held in a fiduciary capacity, and the di- 
rection and review of the actions of all 
officers, employees, and committees uti- 



lized by the bank in the exercise of its 
fiduciary powers, are the responsibility of 
the Board. In discharging this responsi- 
bility, the Board of directors may assign, 
by action duly entered in the minutes, the 
administration of such of the bank's 
fiduciary powers as it may consider proper 
to assign to such director(s), officers(s), 
or employee(s), who are qualified and 
competent to administer fiduciary duties 
and responsibilities, as it may designate 
and may appoint such committees of 
director(s) and/or officer(s) as it deems 
advisable to supervise the trust depart- 
ment. 

No fiduciary account shall be accepted 
without the prior approval of the Board, 
or of the director(s), officer(s), or 
committee(s) to whom the Board may 
have designated the performance of that 
responsibility. A written record shall be 
made of such acceptances and of the 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



1436 



PROPOSED RULES 



relinquishment or closing out of all 
fiduciary' accounts. Upon the acceptance 
of an account for which the bank has in- 
vestment responsibility, a prompt review 
of the assets shall be made. The Board 
shall also ensure that at least once during 
even - calendar year thereafter, and within 
1 5 months of the last review, all the assets 
held in or for each fiduciary" account 
where the bank has investment responsi- 
bilities arc reviewed to determine the 
advisability of retaining or disposing of 
such assets. 

(c) All officers and employees taking part in the 
operation of the trust department shall be ade- 
quately bonded. 

(d) Every bank exercising fiduciary powers shall 
designate, employ, or retain competent legal 
counsel who shall be readily available to pass 
upon fiduciary matters and to advise the bank 
and its trust department. 

(e) Trust assets of a negotiable nature held by 
the bank in its own vaults shall be placed in the 
joint custody of at least two or more bonded of- 
ficers or employees designated by the Board of 
directors. 

(f) Funds received or held by a bank as 
fiduciary awaiting investment or distribution shall 
be promptly invested, distributed, or may be de- 
posited, unless prohibited by the instrument cre- 
ating the trust, in the commercial or savings or 
other departments of the bank; provided that it 
shall first set aside under control of the trust de- 
partment as collateral security, such securities as 
may be found listed in G.S. 142-34 as being eli- 
gible for the investment in sinking funds of the 
State of North Carolina equal in market value 
of such deposited funds, or readily marketable 
commercial bonds having not less than a recog- 
nized "A" rating equal to 125 percent of the 
funds so deposited. Securities delivered to the 
trust department and pledged to secure fiduciary 
deposits shall at all times be kept separate and 
apart from the other assets of the trust depart- 
ment and proper records shall be kept by the 
trust department in connection therewith. If 
such funds are deposited m a bank insured under 
the provisions of the Federal Deposit Insurance 
Corporation, the above collateral security will be 
required only for that portion of uninvested bal- 
ances of each trust which are not fully insured 
under the provision of that corporation. 

(g) Investments by a bank as fiduciary in a 
savings account or accounts or in its certificate 
or certificates of deposit shall be secured by the 
pledge of securities in the same manner and to 
the same extent as required by Subsection (f) of 
this Rule for demand deposits. 



(h) Agency accounts shall not be overdrawn 
nor advances made thereto unless the instrument 
establishing the agency specifically authorizes the 
bank as agent to borrow money. Advances, or 
overdrafts, to trusts or agencies shall not be made 
from funds belonging to other trusts or agencies. 
Where it is deemed necessary in the proper ad- 
ministration of a trust to make temporary ad- 
vances, such advances shall be made from funds 
belonging to the bank and shall at no time exceed 
50 percent of the estimated income of that trust 
for a six months' period. Any advance exceeding 
this amount shall be made in the form of a loan 
from the bank or otherwise, and such loan shall 
be expressly authorized by the trust instrument 
or properly approved by the courts. 

(i) Funds received or held by a bank as 
fiduciary shall not be invested by it in stock or 
obligation of, or property acquired from, the 
bank or its directors, officers, or employees, or 
their interests, or in stock or obligations of, or 
property acquired from, affiliates of the bank. 
This requirement contemplates that the bank will 
not invest trust funds in the obligations of any 
organizations in which officers, directors, or em- 
ployees of the bank have such an interest as 
might affect the exercise of the best judgment of 
the management of the bank in investing trust 
funds. 

(j) No trustee shall directly or indirectly buy 
or sell any property for the trust from or to itself 
as an affiliate, or from or to a director, officer, 
or employee of such trustee or of an affiliate, or 
from or to a relative, employee, partner or other 
business associate. 

(k) Assets held by a bank as fiduciary or agent 
fhall net- may be sold or transferred from one 
trust or agency to another trust or agency, unless 
such transfer is expressly authorized prohibited 
by the instrument creating the trust or agency 
from which and to which the transfer is made, 
and unless the transaction is feif unfair to both 
accounts either account. 

(1) A committee of at least three directors or 
stockholders shall be appointed annually to ex- 
amine, or to superintend the examination of the 
assets and liabilities of the trust department of 
each bank engaging in trust business, and to re- 
port to the Board of directors the result of such 
examination. The committee, with the approval 
of the board of directors, may provide for such 
examination by a certified public accountant, or 
by the auditing department of the bank. A copy 
of such report of examination, which is herein 
required to be made, attested, and verified under 
oath by the signatures of at least three members 
of such committee, shall forthwith be filed with 
the Commissioner of Banks. 



1437 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



PROPOSED RULES 



(m) Funds received or held by a bank as 
fiduciary shall not be invested collectively except 
as provided in Rule .0304 of this Subchapter. 

Statutory Authority G.S. 36A-63; 36A-66; 
36A-6S; 53-43(6); 53-92; 53-104; 150B-ll(l). 

.0303 BOOKS AND RKCORDS; SURCHARGES 

(a) Books and Records. Each bank engaging 
in trust business must keep in the trust depart- 
ment: 

(1) a separate and distinct set of books and re- 
cords showing in proper detail all receipts 
and disbursements of funds, receipts, pur- 
chases and sales of assets, and other trans- 
actions engaged in, in connection with trust 
business; and showing at all times the own- 
ership of all moneys, funds, investments and 
property held by the bank; 

(2) files containing the original instruments 
creating each trust or properly authenticated 
copies thereof; 

(3) a permanent record of minutes for each 
committee, showing clearly its action. All 
minutes shall be signed by the chairman and 
the Secretary and shall be read and approved 
at the next meeting of the committee. 

(b) Surcharges. Banks engaging in a trust 
business must also keep in the trust department 
a permanent record of surcharges. Any surcharge 
of one thousand dollars ($1.01)0) or more must 
be expressly approved by the Trust Committee. 

Statutory Authority G.S. 36A-71; 53-92; 53-110; 
150B-11(1). 

.0304 COLLECTIVE INVESTMENT 

(a) 44*e purpose el this Regulation is t© permit 
the ©se el common truot fund; . a©4 fof the ©©h 
l e ctiv e investment el funds hefo fof fiduciary 
purposes as hereinafter set forth; a©4 the opera 
tfo» el such fundo a* investment trusts fof other 
than such fiduciary purposes is hereby prohib 
itcd. 

(a) Funds held by a bank as fiduciary may be 
invested collectively in one or more common 
trust funds. Such funds shall be organized and 
administered in accordance with the provisions 
of J_2 C . F . R . 9. IS, the same which is herein in- 
corporated by reference except that any reference 
in the aforesaid statute to the Comptroller of the 
Currency shall, for the purposes of banks organ- 
ized under the laws of North Carolina, be 
deemed to refer to the Commissioners of Banks. 



tained h* accordanc e with the provisions el this 

Regulation, as follows: 

(44 » a common trust fund maintained by- 
the bank exclusively fop the oolloctivo m- 
vootmont a»4 reinvestment ©I monioo 
contnbuted thereto by- the bank » its ca- 
pacity- as e x e cutor, administrator, guard 

R(f 1 j 11 L1**TT?TT^ (Jj C 1 Li *I l\ ?\i I ll 1 1 rtTTTTt*T" CT fcj I 11 1 ' ' I I 1 1 
V 3 1 l"l O Mj TtTtTTTTTTT I \Ol ! 

(3) m a fund consisting solely ©I ass e ts el ge- 
tiroment, p e nsion, profit sharing, stock 
bonus, ©* other trusts which aje oxempt 
from federal income taxation under the 
Internal Rovonuo Code, provided that 
such fund is exempt from taxation under 
applicablo Internal Rovonuo Codo pro 
visions, regulations, a«4 rulings. 
(b) Pursuant to G.S. 150B- 14(c), any reference 
to J_2 C.F.R. 9.18 shall automatically include any 
later amendment and edition to that regulation. 



(e) Types el Funds Authorized. Funds hek4 
by- a bank as fiduciary may he invested colleo 
tivelv i© a fund ©f funds established a«4 main 



(e) Governing Provisions. Collective invest 
mont ©I funds ©f other property by- banks under 
Subsection fh) el this Regulation (referred t© i» 
this Regulation as "oolloctivo investment funds") 
shall he administer e d as follows: 

(44 Each collective , investment fund shall he 
established a«4 maintained i© accordance 
with a written plan (referred t© heroin as 
the plan) which shall he approved by- a 
resolution ©f- the bank's board ©f- direc 
tors, approved » vvnting by- competent 
legal counsel, a©4 filed with the State 
Commissioner ©f- Banks. 44*e plan shall 
contain appropriat e provisions «©t incon 
sistent with the regulations el the State 
Banking Commission as t© the manner i© 
which the fund is t© he operated, includ 
»g provisions relating t© the investment 
powers a©4 a general statem e nt ©f the i«- 
vostment policy ©4 the bank with r e spect 
t© the fund; the allocation ©I income, 
profits a©4 losses; the terms a©4 oondi 
tions governing the admission ©f with 
drawal el participations i© the fund; the 
auditing ©f- accounts ©f- the bank with Fe- 
spect t© the fund; the basis a©4 mothod 
©f- valuing assets m the fund, setting forth 
specific criteria fop each type ©f asset: the 
minimum frequency fof valuation el as- 
sets ©f- the fund; the period following each 
such valuation 4ate during which the vai- 
uation ©wy- he made, which period fo 
usual circumstanc e s should »©t exceed 4© 
business days; the basis upon which the 
fund fftay- he terminated; a«4 such oth e r 
matters as F»ay- he necessary t© define 
cl e arly the rights el participants i» the 
fund. Exc e pt as otherwise provid e d t» 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



14 38 



PROPOSED RULES 



I , • W 1 S \ lit tViii- Piil a fiinii "!■''»*'' 
y l, tt i -' / V i l 1 1 1 J i t trrv^, iuiiu u jjt i u 

shall be valued at- mark e t valuo unless 
such value is ftet- readily ascortainablo, » 

ii -tiii'h Cam ri tnir irili in /A . \ i ,-■> f-m i n^H < *-> firi j-a iA 
M lllk.ll LUJL CT 1 HI 1 I U 1 LI L, Ul I QTT3 rl-l 1WVI ITT iWU 

faith by tbe fund trustoos faay be us e d. 

A i~» j-i t-\ 1 r /-~\ T t V i . t i -. I .in lItiH f-w -k il 'nilfiKln -it ♦ t-\ ■■■» 
K^ V • w l rrrc i.'iui l t 'i inn i '\j u > uiiul'h. err i iiu 

principal officii ef tbe banlc fef inspection 
dunng afl banking hours, and upon fe- 
quest a copy ef tbe plan shall be furnished 
t© a»y person. 

(3) Property held by tbe bank ift its capacity 
as truste e ef retir e ment, pension, profit 
sharing, stock bonus, ©f other trusts 
which ate exempt from federal incom e 
taxation under a»y provision ef tbe 
Internal Revenu e Code may be invested 
m collective investment funds established 
under tbe provisions ef Subs e ction (b)( 1) 
ef (2) ef tbis Regulation, subject te tbe 
provisions herein contained pertaining te 
such funds. 

fe} AH participations ift tbe collective invest 

t-.i n\» Inn/-] c K .-> 1 1 1-^,-t riri t t-n-i W.i /~» r' j-t 4 ^ 
rTTCTTT 1 U 1 1 U 31 ITJUT L.*U CTTT 1 1 1VJ LFULTTT cTT CT 

proportionate interest m all ef tbe assets. 
fft order te determin e whether tbe invest 
ment ef funds receiv e d ©* held- by tbe 
banlc as fiduciary ift a participation » a 
collective investment fund is proper, tbe 
banlc may consider tbe collective invest 
ment fund as a whol e aftd shall ftetr fef 
example, be prohibited from making such 
investment because a»y particular asset is 
non income producing. 

/ .1 1 X r-\ t l^^P^ I T-^t f~i l i nn till thin rtiTj^i j-1 l t «— » n i~» ^ •-> /--t-1 

V I j . ~\J I 1VJJ 1 1 V^l Uv I 1 I 1 Y rTTCTTT l_T I 1 W UUI EXXg LTJL 1 1 

period ef three months a bank adminis 
tenng a collective investment fund shall 
determin e tbe ' ■ 'aluo ef tbe assots » tbe 
fund as ef tbe date set fef tbe valuation 
ef assets. Xe participation shall be ad- 
mitted te ef withdrawn from tbe fund es- 
eeet eft tbe basis ef such valuation an4 as 
el such valuation date, eie participation 
shall be admitted te ef withdrawn from 
tbe fund unless a writt e n request fef ©f 
notice ©f intention ef taking such action 

IT ti g 1 I 1-. 't T '■■-> K.-i.-in AJJ t QJWJ /H i"V ti r-\ t- T-»/-tT /-^ J-fl thfl 
L' 1 1 U 11 1IU I \J fWTI LIIIV.1 LU CTTT rTT UV.1UI V 1 1 1\J 

valuation date m tbe fiduciary rocords ef 
tbe bank a»d approved i» such manner 
as tbe Board ef directors shall prescribe. 
Ne- such request ef notico may be eas- 
celled ©f countermanded aftef tbe valu 
ation date. If a fund described » 
Paragraph (b)(2) ef tbis Rulo is te be in- 
vested » teal estate ef other assots which 
ate ftet readily marketable, tbe banlc may 
require a prior notice period, set- te es- 
eeed e«e year, fof withdrawals. 
£5} Audit aftd Reports 



fA) A banlt administering a collectivo i»- 
vestment fund shall at least onc e during 
e ach period ef 4-3 months cause a» ade- 
quato audit te- be made ef tbe collectivo 
investment fund by auditors responsible 
only te- tbe Board ef Directors ef tbe 
banlc. fe tbe event such audit is eef- 
formed by independent public account 
ants, tbe reasonable expenses ef such 
audit f»ay be charged te- tbe collectivo «- 
vestment fund. 

{&} A bank administ e ring a coll e ctivo i»- 
vostmont fund shall at l e ast once during 
each poriod ef 4-3 months proparo a fV- 
nancial report ef tbe fund which shall be 
filed witb tbe Commissioner ef Banks 
within 90 days aftef tbe e«4 ef tbe fund's 
fiscal year. This report, based upon tbe 
audit, shall contain a bst ef investments » 
tbe fund showing tbe eest- aftd current 
market value ef oach inv e stment; a state 
ment f»f tbe poriod since tbe previous je- 
pert showing purchases, with cost; sales, 
with cost, sales price, and profit et less 
aftda»y other investment changes; incomo 
aftd disbursements; aftd- a» appropriato 
notation as te a»y investments i» default. 

(G) fl^e financial report FHay include a de- 
scription ef tbe fund's valuo eft pr e vious 
dates, as weff as its incomo aftd disburse 
ments during previous accounting periods. 
Xe predictions ep representations as te 
future results may be made. Jft addition, 
as te funds described » Subsection (4+ ef 
Subsection fb} ef tbis Regulation, neither 

L I- 11. 1 t. l.'l.'I I 1 IV.' I U.1 1 T \J 1 1 IV J L. ' LI L.'llVLlll\.'II KJ I I 1 I ~ 

banlc shall make reference to tbe peF- 
formanco ef funds oth e r than thoso ad- 
ministerod by tbe banlc. 
f©} A copy ef tbe financial report shall be 
furnished, ef notico shall be given tbiet- a 
copy ef such report is available aftd- w-tH 
be furnished without charge upon request, 
te- each person te- whom a regular periodic 
accounting would ordinarily be rendered 
with respect te oach participating account. 
A copy ef such financial report may be 
furnished te prospective customers. Tbe 
eest ef printing aftd distribution ef thoso 
r e ports shall be borne by tbe bank. •!» 
addition, a copy ef tbe report shall be 
furnished upon r e qu e st te- afty person fef 
a r e asonabl e charg e . Tbe feet ef tbe 
availability ef tbe report fef any fund de- 
seribed i» Subsection (T) ef Subsection (b4- 
ef tbis Regulation Fftay be given publicity 
solely is- connection with tbe promotion 
el tbe fiduciary services ef tbe bank. 



1439 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



PROPOSED RULES 



(E) Except as herein provid e d, tfee bank 
shall »©t advertis e ©f publicise its colloc 
tive investment fund(s) described i© Sub 
section (44 ©f Subsection (fe) ©f tfeis 
Regulation. 
(©} V i ^hon participations are withdrawn from 
a collective investment fund, distributions 
may fe© made i© cash ©f ratably i© kind, 
©f partly » cash a©4 partly i© kind, pro 
vidod tfeat all distnbutions as ©f a»y ©«e 

trail l'ltinn ^1 -t t q .- V-i --i I I 1^^ Q3 ■ I I ■ > iati t tt ■ i . ■nvi.i 
TT1I UU I IT. 'II UUIl J11U11 T7TT 1 1 ILITJV TTTT L I IV . I IX 1 1 1 L. 

basis. 
(3) ff fe* a»¥ reason a© investment is with 
drawn » kind from a collective invest 
mont fo«4 f©F tfee benefit ©f a© 

■j-v ■-» t-4 J ,'i y^ n«-i 4 r- t r\ 4l^^ Tlinil rt f *l^a 4«TjT^ /it ,- I 1 , 'tl 

withdrawal a»© such investment is Ft©t 
distributed ratably i© kind, it shall fee seg- 
rogatod and administered ©f realized upon 
fef the benefit ratably ©f aU participants 
» the collective investment fund a* tfee 
tim e ©f withdrawal. 
(&) Transactions Wit© Bank 

^■^TT T^TT ( .'Lil 1 IV 01 ILIII I TIT V 1 V itl f ▼ rTTTT™I t? Q I 111 CT 

collective investment fund other than i© 
its fiduciary capacity. Except f©F tempo 
Fapy R©* easfe overdrafts ©f as otherwise 
specifically provided her e in, it- may H©t 
le©4 money t© a fund, seU property t©r ©f 
purchas e property from a fund. N© assets 
©f- a collectiv e investment fund may fe© 
invested » stock ©f obligations, including 
timo ©f savings deposits, ©f tfe© bank ©f 
a©y ©f- its aftiliatos: Provided, tfeat such 
deposits may fee made ©f funds awaiting 
inv e stment ©f distribution. Subject t© all 
other provisions ©f tfeis part, funds feel© 
fey a bank as fiduciary f©F its own eFH- 
ployoos fftay fee invested » a coll e ctive 
investment fund. A banlc may not- make 
a©y loan ©ft tfee security ©f a participation 
» a fund, ff because ©f a creditor f©- 
lationship ©f otherwise the banlc acquires 

■ i *-k i *-* 4 . ^Jgfl Q 4 i f^ r* f^ ■ ^ r*t li'i *"\ 'if intt ■ *-v ^ tiifi.l t K f i 

lii r irri r^i i — il rTT cr i *lii i it i f ~* i n ' 1 1 rrr cr l lii hj , 1 1 1 v 

participation shall fee withdrawn ©ft tfee 
©Fst date ©© which such withdrawal ea» 
fee effect od. However, m h© ease shall a© 
unsecured advanc e until the timo el tfee 
n e xt \aluation date t© a© account holding 
a participation fee deemed t© constitute 
tfee acquisition ©f a© int e rest fey tfee bank. 
(4^)- A©y bank administering a collective 
inv e stment fund may purchas e fof its own 
account from such fo©4 a©y defaulted 
fixed income investment feel© fey such 
fund, if » tfee judgment ©f the Board ©f 
directors tfee 6©st ©f segregation ©f such 
investment would fee creator than tfee d+f- 



foronc e botweon its market valu e as© its 

1.' l ii ii- i i ■ v*j CTTTTTTOTTt piUJ 1JIIU1 \J > 1 1 CEOQ I 'I. I Unl T^ 

r-V-k nr ^.i.' (| 1 \l\ I I ♦>-»'> K'-in I.' ,-il ^f<« r- t .-v t-n ni ir 

CTTOrgCTT otTOT TT 1 1 IV L^TXI llv L.IVVTJ IU JU L I (JI 

dail£A fif" ■ «t ' ' | I 111 ' 1 ' 1 " 1 * « t »-»-t i > i-- 4 i-^ j-v f j-v <-i 4 itr 
Dim TV JUV1I III I VlTLII 1\- ITn, IT 1 1 1 LI [ 1 1 UU 'JU til rT^T 

market ¥©fete ©f at tfee sttm ©f coot, ae- 

^^T^^a Li I I l^T^^^T r^T^T^^^^^Ty c^TT^T r^nTHTT CTrttrt^fTT 

whichever is greater. 
f9} FvOGtrictiono. Except i© the ease ©f e©l- 
loctive investment funds doscribod i© 
Subs e ction (b)(2) ©f tfejs Regulation: 
(A) N© funds ©f other property shall fee 
invostod i© a participation i© a colloctivo 
investment fund if as a result »f such i«- 
vootmont tfee participant would have a© 
inter e st aggregating i» e xcess ©f +© percent 
©f tfee then market value ©f tfee fund: 
Provided, tfeat i» applying tfeis limitation 

^^^^^^ ^^T ^T^^TTTj Cwv w LI 1 1 L ^' L.I1 D LI L l^TTTT ^^^T TTt^7 

same p e rson ©f persons a©4 as much as 
one half ©f tfee income ©f principal »f 
each account is payable ©f applicable t© 
tfee «se ©f tfee same person ©f persons, 
such accounts shall fee considered as one. 
(4^- r4© invostmont f©F a collective invest 

»-■-> fint Tiinil it- Y-i ] i 1 I t-». i j-i-i ■ i , i 1 1 i n t-t/ml-f K/"m, 1 .- 
rTTCTTT I UT III TTTTcTTT I'V 1 1 IT1L1 V ITT L' I U L I L J , I.'IHIUJ, 

©f other obligations ©f a©y ©»e person, 
firm, »f corporation if as a rosult ©f such 
investment tfee total amount invested i© 
stocks, bonds, ©f other obligations issued 
©f guaranteed fey such person, firm, ©f 
corporation would aggr e gat e i© e xcess ©f 

T V pCTT^TiT kJ l 1 1 IV 1 1 1\. 1 1 1 I RD ILV I T Lll LIV PT I I I\? 

fund: Provided, tfe©t tfeis limitation shall 
»©t apply t© invootments i© direct obli 
gations ©f tfee United States ©f other ©fe- 
ligations fully guaranteed fey tfee United 
States as t© principal a©4 interest. 
(G) A bank administering a collective i«- 
vestmant fund shall maintain, i© cash a©4 
readily marketable investments, such p©F- 
centage ©f the assets ©f tfee fund as is 
necessary t© provide adequately (&f tfee 
liquidity needs ©f tfee fund em4 t© pr e vent 
inequities among fund participants. 

(44) The reasonable expenses incurred i© seF- 
vicing mortgages held fey a collective i«- 
vostment fund may fee charged against tfee 
incomo account »f tfee fund a©4 paid t© 
sonicing agents, including tfee bank ad- 
minist e ring tfee fund. 

(44-) Reserve Account 

(A4 A hank may (fe«t shall f*©t fee required 
t©4 transfer «© t© five perc e nt ©f tfee ©et 
income derived fey a collectiv e investment 
fund from mortgag e s held fey such fund 
during any regular accounting period t© a 
reserv e account: Provided, tfeat ©© such 

♦ riinfli-irc i- \-\ ■ i 1 1 1-. Q «■»-! n ,1 ,t u ■ li i , ■ \-\ ii-iiiil^ 1 p ■ ■ i i ,^-i 
I I III I .'It I .' J1IU1I I 'L 1 1 11 1L1L TT I I IT. I T TnTTTTTTT CTTTTTtT 



6.79 NORTH CAROLINA REGISTER January 2, 1992 



1440 



PROPOSED RULES 



l T I V rTTTTTTTTTTT rTT HUt'I I IXt'V^ ' II E I C IV U /ILVT. U 1 / 1 1 \J 

percent ef tbe outstanding principal 
amount ef ail- mortgage!! held » the fund. 
44*e amount ef such rococo account, if 
established, shall be deducted from the 
assets ef tbe fund i» determining tbe faif 
market value el tbe fund fef the purpos e s 
ef admissions aed withdrawals. 
ffti At- the eed ef e ach accounting period, 
all interest payments which afe dee bet 
unpaid w4th respect te mortgages ie the 
fund shall be charged against such reserve 
account te the extent available aed cr e d 
ited te income distributed te participants. 
f» tbe event ef subsequent recovery ef 
such interest payments by the fund, the 
reserve account shall fee credited with- the 
amount se recovered. 
(44* A bank administering a collective invest 
m e nt fund shall hav e the exclusive man 
ag e ment thereof, 44*e bank may charge a 
fee fef the managem e nt ef the collective 
investment fund prosid e d that the frao 
tional pert ef such fee proportionate te 
the inter e st ef each participant shall eetr 
when added te eey- oth e r compensations 
charg e d by- a bank te a participant, exceed 
the total amount ef compensations which 
would hav e been charg e d te said partic 
ipant if ee assets ef said participant had 

V~. , -1 . i r-\ nil v., <i1,l 1 tl t^i ■ L »-t lQl^flAlOac; ] tl >fin tlltl;! 

l ' w 1 1 nrrvrrro in tTir mi l. »li uihij 11 1 tmi mrmT 

44*e bank shall absorb the costs ef e stab 
lishing ef r e organising a collectiv e invest 
ment fund. 
(44} e*e bank administering a collective ie- 
vestment fund shall issue any- certificate 
ef other document evidencing a direct ef 
indirect interest ie such fund ie aey form. 

\ I 1 j . ' \r 1 1 LX.'l\J.l\\J 1 I IUUV rTT rTTTT^T rTTTTTT (HI ru rTT T I IV 

exercise ef dee eafe » connection with the 
administration ef a collective investment 
fund shall be deemed te be a violation ef 
this pert if promptly after tbe discovery 
ef tbe mistake tbe bank takes whatever 
action may be practicable ie tbe ciroum 
stances te remedy the mistake. 
f-fe} Short term investment funds established 
under Paragraph (be ef ties Rule may- be 
operated ee a cost, rather than market 
value, basin fef purposes ef admissions 
aed withdrawals, if tbe plan ef operation 
satisfies tbe following conditions: 
(A} Investments must be limited te bond '. , 
notes ef other evidences ef indebtedness 
which afe payable e» demand (including 
variable amount notes) ef which have a 
maturity date eet exceeding £4- day* from 
tbe date ef purchase. However, 30 pef- 



ment 



ivi rr err 1 1 iv t ui uu u i i 1 i\j rnrTa 1 1 hit t^r 11 1 ■ 

vested i» longer term obligations; 
(-&) 44he difforonco between tbe eest aed 
anticipated principal receipt ee maturity 
must be accrued e» a straightlino basis; 
(€f Assets ef tbe fund must be held until 

maturity under usual circumstances; aed 
(bty After e ffecting admissions aed with 
drawals, set less than 3© percent ef tbe 
value ef tbe remaining assets ef tbe feed 
must be composed ef cash, d e mand obli 
gations aed ass e ts that will mature e» tbe 
fund's next business day? 
Other Funds, Ie addition te tbe invest 
pormittod under Subsection (b) ef this 
Regulation, funds ef other property received ef 
held by- a bank as fiduciary feay be invested eeb- 
lectively as follows: 

(4} i» a single feal e stat e loan, a direct obli 
gation ef tbe United States, ef ae obli 
gation fully guaranteed by tbe United 

V- *- ■ . t , i ,- i-\ «■ i r\ r, .■-iniiln r i v.-wl -~i m mint r; .t j-- » intir 
L t IUIUJ t7T D I CT LTTT T EJ \J 1 1 ,'\LU HI 1 1\J U 1 1 1 TTCTTTTTTTTT 

obligation, ef oth e r proporty, either feab 
personal, ef mixed, ef a single issuer: 
Provided, that tbe bank owns ee partic 
ipation » tbe loan ef obligation a»d has 
He inter e st ie aey- investment therein e*- 
eept i» its capacity as fiduciary. 

(4) ie a common trust fund maintained by- 
tbe bank fef the collective investment ef 
cash balanc e s rec e ived ef held by- a bank 
m its capacity as truste e , e xecutor, ad- 
ministrator, ef guardian, which tbe hank 
considers te be individually tee small te 
be invested separately te advantage. The 
total investment fef such fund must eet 
exceed eee hundred thousand dollars 
(S 100,000); tbe number ef participating 
accounts is limited te f-O&r aed ee partic 
ipating account may hav e a» interest i» 
the fund ie excess ef tee- thousand dollars 
($10,000): Provided, that ie applying 
these limitations if tw-e ef more accounts 
afe created by- tbe sam e person ef persons 
aed as much as on e half ef tbe income ef 
principal ef each account is presently 
payable ef applicable te the ese ef tbe 
same person ef persons, such account 
shall be consid e r e d as eeet 

(d} ie aey- investment specifically authorised 
by- court order, ef authorised by- tbe m- 
strument cr e ating tbe fiduciary relation 
ship, m- tbe ease ef trusts created by a 
corporation, tts subsidiaries aed affiliates 
ef by several individual settlers w-be afe 
closely relat e d; 

(4) ift such other manner as shall be approved 
ie writing, bv- tbe Commissioner ef Banks. 



1441 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



PROPOSED RULES 



Statutory Authority G.S. 36A-92; 53-92; 53-104; 
150B-1I(1). 

SUBCHAPTER 3H - APPLICATIONS BY RE- 
GIONAL BANK MOLDING COMPANIES 

SECTION .0100 - ADMINISTRATIVE 

=000+ .0101 APPLICATION FEES (REPEALED) 

: fhe application fee* fop acquis i tions by regional 

l-\ <\ *-\ \r 1^^^^^^^^^^^* ^^^^t^^^^^j^^^^^ m ^^^^^^^lli I *~i f* r\ I | \\ 'i l ■ r-t ^Li«- 

UU1 I1V III.'IUIIIE, L.'l 7 1 I 1 I .' Ill 1 1 \fJ O I T^TTTT^T ^J U 1 l_T I_I I W d 1 1U~I 

A*4 shell be Owee thousand doliars ($3,000) fof 
the Rogjonal BanJc Holding Company p4*» two 
thousand dollars ($2,000) fef eaek North 
Carolina bank and/or bank holding company to 
be I 



Statutory Authority G.S. 53-2I4(b). 

.0102 REGIONAL BANK HOLDING 
COMPANY ACQUISITIONS 

Regional bank holding companies may acquire 
North Carolina banks or bank holding compa- 
nies upon written approval of the Commissioner 
of Banks. 

(1) Application. An application to acquire a 
North Carolina bank or bank holding com- 
pany must be submitted in writing, on Form 
60 which may be obtained from the Com- 
missioner of Banks. The application, to- 
gether with the prescribed fee, must be filed 
with: 

The Commissioner of Banks 

430 N. Salisbury Street 

Dobbs Bldg. Box 29512 

Raleigh. N.C. 27626-0512 

(2) Application fees. The application fees for 
acquisition by a regional bank holding 
company in North Carolina under the 
North Carolina Regional Reciprocal Bank- 
ing Act shall be three thousand dollars 
($3.000) for the regional bank holding com- 
pany plus two thousand dollars ($2,000) for 
each North Carolina hank and/or bank 
holding company being acquired. 

(3) Notice of filing written comments. Within 
30 days of acceptance of a completed appli- 
cation for filing, the Commissioner of Banks 
will publish a notice of the filing of the ap- 
plication as set forth in G.S. 53-21 1(d). 
Within 14 days of the published notice, any 
interested person may submit written com- 
ments and information concerning the ap- 



plication to the Commissioner of Banks. 
All written comments received during the 
comment period will become a part of the 
official record compiled with respect to the 
application. The Commissioner of Banks 
may extend the comment period if he deter- 
mines that there are extenuating circum- 
stances. 



(4) Examination by Commissioner. Upon re- 
ceipt of a completed application, the Com- 
missioner of Banks will conduct an 
examination into all the facts connected with 
the proposed acquisition in accordance with 
Articles 17 and J_8 of Chapter 53. 

(5) Action by Commissioner. No final deci- 
sion may be made by the Commissioner of 
Banks until the comment period has ex- 
pired. The final decision of the Commis- 
sioner of Banks on an application will be in 
writing and include findings of fact and 
conclusions of law. 

(6) Notification of Commissioner's action. 
The applicant and all persons who have 
made written requests for such notice will 
be given notice of the Commissioner of 
Banks' final decision on each application. 

Statutory Authority G.S. 53-211; 53-214(b); 
1508-11(1). 

.0103 BANK HOLDING COMPANY 
REGISTRATION 

Bank holding companies controlling North 
Carolina federally chartered or state chartered 
banks, or which control nonbank subsidiaries 
(direct or indirect) having offices located in the 
state shall register with the Commissioner of 
Banks on Form 61. Initial registrations shall be 
completed no later than 180 days after becoming 
a bank holding company as set forth in G.S. 
53-227 and annual registrations shall be com- 
pleted not later than July 1st of each year there- 
after, continuing until such time that the bank 
holding company no longer meets the registra- 
tion requirements as set forth in G.S. 53-227. 
Forms may be obtained from and should be filed 
along with associated fees with: 



The Commissioner of Banks 

430 N. Salisbury Street 

Dobbs Bldg. Box 2^512 

Raleigh, N.C. 27626-0512 



Statutory A uthority 
1508-1/(1). 



G.S. 53-227; 53-230; 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



1442 



PROPOSED RULES 



TITLE 10 - DEPARTMENT OF HUMAN 
RESOURCES 

7 V otice is hereby given in accordance with G.S. 
150B-21.2 that the Certificate of Need Section, 
Division of Facility Services, Department of Hu- 
man Resources intends to repeal rule(s) cited as 
I0NCAC3R .2214. 

1 he proposed effective date of this action is April 
1, 1992. 

1 he public hearing will be conducted at 2:00 
p.m. on January 22, 1992 at Room 201, 701 
Barbour Drive. Raleigh, X.C. 

IXeason for Proposed Action: The 1992 State 
Medical Facilities Plan distinguishes between 
dialysis stations for in-center maintenance pa- 
tients, home dialysis patients, and patients needing 
isolation. This rule does not make this distinction 
and therefore is proposed to be repealed. 



Cc 



omment Procedures: Written comments con- 
cerning the repeal of the rule should be submitted 
as soon as possible but no later than February I, 
1992 to Jackie Sheppard at 701 Barbour Drive. 
Oral comments may be presented at the hearing. 

CHAPTER 3 - FACILITY SERVICES 

SUBCHAPTER 3R - CERTIFICATE OF NEED 
REGULATIONS 

SECTION .2200 - CRITERIA AND STANDARDS 
FOR END STAGE RENAL DISEASE SERVICES 

.2214 REQUIRED PERFORMANCE 
STANDARDS 

(a) A proposal involving aft increas e i» fee 
number e# dialysis station ; ' . » aft existing renal 
dialysis facility shall set be approved unless, 
prior te> fee submittal ef fee application, fee av- 
erage utilization el aft e xisting stations at- fee* site 
a* which fee proposed stations aw te>be operated 
is at least Qr-6 dialysis procedures pef station pef 
week fof fee number el fee facility's current i«- 
c e nt e r dialysis patients wfee reside within id miles 
el fee- facility. 

fb} A proposal involving fee establishment el 
a iww r e nal dialysis facility ef center shall ftet- be 
approved unl e ss fee utilization el aft machines 
proposed te> be operated i* reasonably project e d 
tefeata continuous rate el a* least It© dialysis 
procedures pef station pef week at- fee e«4 ef fee 
fwst twe operating y e ars following completion ef 
the proposed project. 



(e) A proposal involving a» increaso » tfte 
number ef dialysis stations m a» existing r e nal 
dialysis facility shall net be approved unl e ss tfte 
av e rage utilization ef aft machines proposed te 
be operutod is r e asonably proj e cted te be at a 
continuous Fate ef at- l e ast 9t4 dialysis procedures 

»^^^£ ■ ■ t 'jit, \ r*\ r^^^^ ^^^^^^L" l^i t f > I ^ to l T > i I \ j T 1 ii 1 ll t'l t ^^^^^i^* 

y^^T rTTTTTTTTTT PV1 " V_V IV HI EZXO vIlU TTT 1 1 IV 1 LI J I tTT^Tr™ 

ating yea? following completion ef the proposed 
project. 

Statutory Authority G.S. 131E-177(1). 

****************** 



iV otice is hereby given in accordance with G.S. 
150B-21 .2 that the Child Day Care Commission 
intends to amend rule(s) cited as 10 XCAC 3U 
.0102, .0401, .0403. .2/01, .2609. 

1 he proposed effective date of this action is April 
1, 1992. 

1 he public hearing will be conducted at 10:00 - 
11:00 a.m. on February 6, 1992 at the Council 
Building, Room 201 , 701 Barbour Drive, Raleigh, 
X.C. 

IXeason for Proposed Action: At the request of 
the X.C. Child Day Care Commission and to 
amend certain rules to conform to the provisions 
of recently enacted legislation. 



Cc 



omment Procedures: Any interested person 
may present his or her views and comments either 
in advance in writing to APA Coordinator. Divi- 
sion of Facility Services, P.O. Box 29530, Raleigh. 
NC 27626-0530; or in writing or orally at the 
hearing. Any person may request permission to 
be heard or request information about the pro- 
posed rules by writing or calling Dolores 
Whittemore, Child Day Care Section, P.O. Box 
29530, Raleigh. XC 27626-0530; telephone (919) 
733-4801. 

CHAPTER 3 - FACILITY SERVICES 

SUBCHAPTER 3U - CHILD DAY CARE 
STANDARDS 

SECTION .0100 - PURPOSE AND DEFINITIONS 

.0102 DEFINITIONS 

The terms and phrases used in this Subchapter 
shall be defined as follows except when the con- 
tent of the rule clearly requires a different mean- 
ing. The definitions prescribed in G.S. 110-86 
also apply to these Rules. 



1443 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



PROPOSED RULES 



(1) "Age appropriate" means suitable to the 
chronological age range and developmental 
characteristics of a specific group of children. 

(2) "Agency" means the Child Day Care Sec- 
tion, Division of Facility Services, Depart- 
ment of Human Resources, located at 701 
Barbour Drive, Raleigh, North Carolina 
27603. 

(3) "Appellant" means the person or persons 
who request a contested case hearing. 

(4) "A" license means the license issued to day 
care operators who meet the minimum re- 
quirements for the legal operation of a child 
day care facility pursuant to G.S. 110-91 and 
applicable rules in this Subchapter. 

(5) "AA" license means the license issued to 
day care operators who meet the higher 
voluntary standards promulgated by the 
Child Day Care Commission as codified in 
Section .1600 of this Subchapter. 

(6) "Child Care Program" means a provider 
of child day care services and may consist 
of a single center or home, or a group of 
centers or homes or both, which are oper- 
ated by one owner or supervised by a com- 
mon sponsor. 

(7) "Day care center" means any day care fa- 
cility as defined in G.S. 110-86(3) which is 
authorized to provide day care to 13 or more 
children when any child present is 
preschool-aged according to the definition 
of preschool-aged child in this Rule. 

(8) "Day Care Home" means any child day 
care home as defined in G.S. 110-86(4) 
which provides day care on a regular basis 
of at least once per week for more than four 
hours, but less than 24 hours per day. Child 
care arrangements excluded from the defi- 
nition of day care facility in G.S. 1 10-86(3) 
are excluded as day care homes. 

(9) "Department" means the Department of 
Human Resources. 

(10) "Division" means the Division of Facility 
Services within the Department of Human 
Resources. 

(1 1) "Drop-in care" means a child day care ar- 
rangement where children attend on an in- 
termittent, unscheduled basis. 

(12) "Group" means the children assigned to 
a specific caregiver, or caregivers, to meet the 
staff-child ratios set forth in G.S. 110-91(7) 
and this Subchapter, using space which is 
identifiable for each group. 

(13) "Large child day care center" or "large 
center" means any day care center which is 
authorized to provide care to 80 or more 
children. 



(14) "Large child day care home" or "large 
home" means any day care facility as defined 
in G.S. 110-86(3) which is authorized to 
routinely provide care to a maximum of 12 
children when any child present is 
preschool-aged or, when all children present 
are school-aged, to a maximum of 15 chil- 
dren. Provided the appropriate; child/staff 
ratios are ftet- excoodod, the The large home 
may exceed these maximum capacities and 
may exceed the staff/child ratio limitations 
and the maximum group sizes specified in 
Rule .2607 of this Subchapter by no more 
than two children: 

(a) during the school year for no more than 
one hour immediately after school; and 

(b) during the two week period preceding and 
the two week period following the public 
school year. 

(15) "Licensee" means the person or entity that 
is granted permission by the State of North 
Carolina to operate a day care center. 

(16) "Licensing Manual" means the document 
published by the Child Day Care Section 
which contains the procedures and standards 
required by North Carolina law, the com- 
mission, and the department for licensure of 
child day care centers. The licensing manual 
may be obtained from the section at the ad- 
dress given in Paragraph (1) of this Rule. 

(17) "Medium child day care center" or "me- 
dium center" means any day care center 
which is authorized to provide day care to 
at least 30 but no more than 79 children. 

(18) "Operator" means the person or entity 
held responsible by law as the owner of a 
child day care business. The terms "opera- 
tor", "sponsor" or "licensee" are used inter- 
changeably. 

(19) "Part-time care arrangement" means a 
child care arrangement as defined in G.S. 
110-86 which provides care on less than a 
full-time basis. Examples of part-time care 
arrangements are certain drop-in, 
before/after school, and seasonal programs. 

(20) "Passageway" means a hall or corridor. 

(21) "Preschool (formerly preschool-aged) 
child" means any child under 13 years of age 
who does not fit the definition of school- 
aged child in this Rule. 

(22) "Provisional License" means the type of 
license issued to a center which does not 
conform in every respect with the standards 
for an "A" license. 

(23) "Registrant" means the person or entity 
that is granted permission by the State of 
North Carolina to operate a day care home. 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



1444 



PROPOSED RULES 



(24) "School-aged child" means any child who 
is at least five years old on or before October 
16 of the current school year and who is at- 
tending, or has attended, a public or private 
grade school or kindergarten. 

(25) "Section" means the Child Day Care Sec- 
tion, Division of Facility Services, Depart- 
ment of Human Resources. The section is 
located at the address given in Paragraph (1) 
of this Rule. 

(26) "Small day care center" or "small center" 
means any day care center which is author- 
ized to provide day care for a maximum of 
29 children. 

(27) "Small day care home" or "small home" 
means the child care arrangements defined 
in G.S. 110-86(4) which are subject to the 
registration requirements set forth in Section 
.1700 of this Subchapter. 

(28) "Special Provisional License" means the 
type of license which may be issued a day 
care operator pursuant to the conditions of 
G.S. 1 10-88 (6a) when child abuse or neglect 
has occurred in the center. 

(29) "Substitute" means any person who tem- 
porarily assumes the duties of a regular staff 
person for a time period not to exceed two 
consecutive months. 

(30) "Teacher" means the caregiver who has 
responsibility for planning and implement- 
ing the daily program of activities for each 
group of children. 

(31) "Temporary care arrangement" means any 
child day care arrangement required to be 
regulated pursuant to G.S. 1 10-86 which 
provides either drop-in care or care on a 
seasonal or other part-time basis. 

(32) "Temporary license" means the license 
which may be issued when a licensed center 
changes location or changes ownership or 
when application for licensing of a new fa- 
cility has been made m accordance with 
Rule . 0403(a)(2) of this Subchapter. 

(33) "Volunteer" means a person who works 
in a day care center or day care home and is 
not monetarily compensated by the center 
or home. 

Statutory Authority G.S. 110-88; 143B-168.3. 

SECTION .0400 - ISSUANCE OF PROVISIONAL 
AND TEMPORARY LICENSES 

.0401 PROVISIONAL LICENSE 

(a) A provisional license may be issued in ac- 
cordance with the provisions of G.S. 110-88(6) 
for any period of time not to exceed twelve con- 
secutive months for anv of the following, reasons: 



(1) To allow a specific time period for cor- 
recting a violation of the building, fire, or 
sanitation requirements, provided that the 
appropriate inspector documents that the 
violation is not hazardous to the health 
or safety of the children but nevertheless 
necessitates a provisional classification 
until corrected. 

(2) To allow a specific time period for the 
center to comply fully with all licensing 
requirements other than building, fire, or 
sanitation, and to demonstrate that com- 
pliance will be maintained, provided that 
conditions at the center are not hazardous 
to the health or safety of the children or 
staff. 

(3) To allow time for the applicant or licensee 
to obtain a declaratory ruling pursuant to 
Section .2000 of this Subchapter. 

(-(-)• 4fe allow as applicant te- open a facility 
oven though a liconoo has aet- been issued, 
provided the applicant mad e initial appli 
cation fef a day ea?e lic e nse at least few 
wooko prior te- the scheduled opening date, 
has complied with the Section's requests 
fef information te- d e monstrate potential 
complianc e with the G e neral Statutes aftd- 
the rules ef this Subchapter. a»4 the See- 
t+eft has ftet determined that the applicant 
is ineligible fef a license 

(b) The provisional license may be issued upon 
the section's determination that the applicant or 
licensee is making a reasonable effort to conform 
to such requirements. 

(c) The provisional license and the document 
describing the reasons for its issuance shall be 
posted in a prominent place in the center. 

(d) A licensee may obtain an administrative 
hearing on the issuance of a provisional license 
in accordance with Section .2000 of this Sub- 
chapter. 

Statutory Authority G.S. 110-88(6); 143B-J68.3. 

.0403 TEMPORARY LICENSES 

(a) A temporary license may be issued in ac- 
cordance with the provisions of G.S. 1 10-88(10): 

( 1 ) to the operator of a previously licensed 
facility when a change in ownership or 
location occurs, provided the operator 
applied for a license, pursuant to Section 
.0300, and Rule .0204(a) or (b) of this 
Subchapter, prior to the change in status; 
or 

(2) to allow an applicant to open a facility, 
provided the applicant made initial appli- 
cation for a dav care license at least four 
weeks prior to the scheduled opening date. 



1445 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



PROPOSED RULES 



has complied with the Section's requests 
for information to demonstrate potential 
compliance with the General Statutes and 
the rules of this Subchapter, and the Sec- 
tion has not determined that the applicant 
is ineligible for a license. 

(b) The temporary license shall be posted in a 
prominent place in the center. 

(c) The temporary license shall expire after 90 
days, or upon the issuance of a license or provi- 
sional license to the operator, whichever is ear- 
lier. 

(d) An operator may obtain an administrative 
hearing on the denial of a temporary license in 
accordance with Section .2000 of this Subchap- 
ter. 

Statutory Authority G.S. 110-88(10); 
143B- 168.3. 

SECTION .2100 - CHURCH DAY CARE CENTER 
REQUIREMENTS 

.2101 CENTERS OPERATING UNDER 
G.S. 110-106 

(a) At least 30 days prior to the first day of 
operation of a new church day care center, the 
prospective operator shall send a "Letter of In- 
tent to Operate" to the section. That letter shall 
include the name, address, and telephone number 
of the operator and the center, if known; the 
proposed number and age range of children to 
be served; and the center's scheduled opening 
date. A representative of the section shall con- 
tact the prospective operator no later than seven 
calendar days after the Letter of Intent is received 
to advise the operator of the applicable require- 
ments and procedures. 

(b) Church day care centers shall comply with 
all day care center requirements in this Subchap- 
ter except for the rules regarding age-appropriate 
activities in Rules .0505 - .051 1(a) and .2508; and 
Rules .0704, .0707 - .0711, a*4 Paragraphs (a) 
through (d) of Rule .0714, Paragraphs (b), [c] 
and (f) of Rule .2510, and Paragraphs (b), (c) and 
(g) of Rule .2606 regarding staff qualifications 
and training requirements. The requirements 
regarding qualifications for staff contained in 
G.S. 1 10-91(8) do apply to centers operating un- 
der the provisions of G.S. 1 10-106. Compliance 
shall be documented at least annually using the 
same forms and in the same manner as for all 
other centers. 

(c) The section shall notify the operator in 
writing as to whether the center complies or does 
not comply with the requirements. 



Statutory Authority G.S. 110-106; 143B-168.3. 

SECTION .2600 - REQUIREMENTS FOR UARGE 
DAY CARE HOMES 

.2609 OTHER CAREGIVING REQUIREMENTS 

(a) Meals and snacks shall be served in ac- 
cordance with the requirements of Section .0900 
of this Subchapter except that Rules .0901(b) and 
.0902(a) do not apply. 

(b) All food shall be prepared and served in a 
sanitary manner. All food shall be served on an 
individual sanitary plate or other appropriate 
container. Snack foods may be placed on an in- 
dividual napkin or paper towel. No food shall 
be placed directly on a countertop, table top or 
other such surface. 

(c) No more than one child shall be fed with 
the same utensil or drink from the same cup or 
glass. 

(d) The requirements related te written dioci 
plino policies a«4 inappropriat e discipline toch 
niquos as opocifiod » of Rule .1801 shall apply 
to large homes. 

(e) Diapers shall be changed whenever they are 
soiled or wet. 

(f) Children shall be toilet trained according to 
individual readiness. 

(g) Each preschool-age child shall be given time 
and a place to rest or nap comfortably each day. 
Each preschool-age child shall have an individual 
bed, crib, cot or two-inch mat with clean linens. 

(h) A comfortable place with clean linens shall 
be made available to each school-aged child who 
wants to rest or who is ill. 



Statutory Authority G.S. 
143B- 168.3. 



110-91(1), (2), (10); 



****************** 



lyotice is hereby given in accordance with G.S. 
150B-2I.2 that the Commission for Mental 
Health, Developmental Disabilities and Substance 
Abuse Services intends to amend ntle(s) cited as 
10 NCAC 14K .0351, .0403; 14M .0704, .0711; 
18Q .0520; and adopt rule(s) cited as 10 NCAC 
18Q .0542 - .0552. 

1 he proposed effective date of this action is April 
1, 1992. 

1 he public hearing will be conducted at 1:00 
p.m. on February 5, 1992 at the Murdoch Center, 
Administration Building. Conference Room, 32nd 
Street, Butner, N.C. 27509. 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



1446 



PROPOSED RULES 



I\eason for Proposed Action: 10 SCAC I4K 
.0351, .0403; 14M .0704, .0711; 18Q .0520 - To 
comply with new building code requirements. 10 
NCAC 1SQ .0542 - .0552 ■ To reinstate Stand- 
ards for area programs and their contract agen- 
cies, which were inadvertently repealed. 



G 



omment Procedures: Any interested person 
may present his comments by oral presentation or 
by submitting a written statement. Persons wish- 
ing to make oral presentations should contact 
Charlotte Tucker, Division of Mental Health, De- 
velopmental Disabilities and Substance Abuse 
Services, 325 N. Salisbury St., Raleigh, N.C. 
27603, (919) 733-4774 by February 3, 1992. 
Written comments must be sent to the above ad- 
dress and must stale the rules to which the com- 
ments are addressed. Time limits for oral 
remarks may be imposed by the Commission 
Chairman. Fiscal information on these Rules is 
also available from the same address. 

CHAPTER 14 - MENTAL HEALTH: GENERAL 

SLBCHAPTER 14K - CORE LICENSURE Rl LES 

FOR MENTAL HEALTH: MENTAL 

RETARDATION AND OTHER 

DEVELOPMENTAL DISABILITIES: AND 

SUBSTANCE ABUSE FACILITIES 

SECTION .0300 - FACILITY AND PROGRAM 
MANAGEMENT 

.0351 ADMINISTRATION AND 

PRESCRIPTION OF MEDICATION 

Whenever a facility administers medication, 
documentation in the client record shall include 
the following: 

( 1 ) (44 individualized record of medication ad- 
ministered only bv program staff, privileged 
in accordance with 10 NCAC 14K .0319, 
including record of doses administered; 

(2) (-44 written approval of the legally responsi- 
ble person of a minor or an incompetent 
adult is required before administering over- 
the-counter non-prescription medications; 

(3) (44 for minors seeking treatment without 
parental consent, a physician or other per- 
son authorized to prescribe legend drugs 
must approve the use of over-the-counter 
non-prescription medications during the 
time when the minor is in the care of the 
facility; a«4 

(4) (4} documentation of medication adminis- 
tration errors and adverse drug reactions, 
and immediate notification of prescribing 
physician; and 



(5) In addition, if the medication has been 
prescribed by a facility physician: 

(a) {4-j written medication orders signed by the 

prescriber; and 

(b) f44 assessment by physician of client's drug 

therapy regimen for appropriateness, at 
least every six months, except methadone, 
which shall be reviewed with the client 
every three months. 

Statutory Authority G.S. 90-21.5; 90-171.20 (7), 
(8); 90-177.44; 122C-26; 1 438- 147. 

SECTION .0400 - PHYSICAL PLANT 

.0403 COMPLIANCE WITH BUILDING CODE 
REQUIREMENTS 

(a) As used in this Rule the term "new 
facility" refers to a facility which has not been li- 
censed previously and for which an initial license 
is being sought. The term does not refer only to 
a ''new" building but will apply to an "old" 
budding if the budding houses a facility for which 
an initial license is being sought. 

(b) Each new facility specified in (d), (e), (f), 
(g), (h) and (i) of this Rule, with the exception 
of private home respite, alternative family living 
and apartment models, and supervised inde- 
pendent living, shall be in compliance with the 
current edition of Section 1 IX of Volume I of the 
N.C. State Building Code. 

(c) Each new facility specified in (d), (e), (f), 
(g), (h) and (i) of this Rule, with the exception 
of private home respite, alternative family living 
and apartment models shall be in compliance 
with the current edition of Volume II, III and IV 
of the N.C. State Budding Code. 

(d) In addition to Building Code requirements 
specified in (b) of this Rule, new facilities speci- 
fied in (1), (2), a«4 (3) and (4) of this Paragraph 
shall meet the requirements of the current edition 
of Volume I-B of the N.C. State Building Code 
as follows: 

( 1 ) Mental retardation ef other developmental 
disability faciliti e s: Developmental Disa- 
bility group home facilities: 

(A) group homes for adults with mental 
retardation »f other developmental disa- 
bilities serving six or fewer clients who are 
ambulatory and able to respond on their 
own and evacuate the facility without as- 
sistance; s«4 

(B) group homes for children with mental 
retardation »f other developmental disa- 
bilities serving six or fewer clients who are 
ambulatory and able to respond on their 
own and evacuate the facility without as- 
sistance; and 



1447 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



PROPOSED RULES 



ill 



(C) group homes for individuals with men 
tel retardation »f oth e r developmental 
disabilities and with behavior disorders 
serving six or fewer clients who are 
ambulatory and able to respond on their 
own and evacuate the facility without as- 
sistance; a«4 

(©) community center based rocpito fog in- 
dividuals with mental retardation, other 
developm e ntal disabilities, developmental 

tltflii V OF Lit TTTTTC I I J I 1 1 Mr**T? CTTTTTTTTTTTTTTT !TT?I T — 

« -r\ i-t til ri~i l~i «- hill 'in- --*'■'•»»-**''■ urVin ■-! r-r-t 

Illy— 1 1 t \J \J I l\J T1 \. 1 CTICTTTTT fT 1 IKJ Ul \J 

ambulatory a&4 able to r e spond e» their 
own a«4 evacuate the facility without as- 
sistance. 

Developmental Disability respite facilities: 
small community center-based respite for 
individuals with developmental disabili- 
ties, developmental delays or at risk for 
these conditions serving three or fewer 
clients of whom one, two or three are 
non-ambulatory or unable to respond on 
their own to emergency conditions: . 
(A) Building requirements of 512.2 FAM- 
ILY DAY CARE HOMES, Vol. 1. N.C. 



Building Code shall be met. 
(B) Mobile homes shall not be permitted. 

(3) f3j Mental health facilities: " 

(A) group homes and residential acute 
treatment for adult and elderly individuals 
who are mentally ill serving six or fewer 
clients who are ambulatory and able to 
respond on their own and evacuate the 
facility without assistance; and 

(B) residential treatment for children and 
adolescents serving six or fewer clients 
who are ambulator,' and able to respond 
on their own and evacuate the facility 
without assistance. 

(4) (4} Substance abuse facilities: 

(A) nonhospital medical detoxification for 
individuals who are substance abusers 
serving six or fewer clients who are 
ambulatory and able to respond on their 
own and evacuate the facility without as- 
sistance; 

(B) social setting detoxification for individ- 
uals who are alcoholics serving six or 
fewer clients who are ambulatory and able 
to respond on their own and evacuate the 
facility without assistance; and 

(C) halfway houses for individuals who are 
substance abusers serving six or fewer cli- 
ents who are ambulatory' and able to re- 
spond on their own and evacuate the 
facility without assistance. 

(e) In addition to Building Code requirements 
specified in (b) and (c) of this Rule, new facilities 



specified in (1) and (2) of this Paragraph shall 
meet the requirements of the current edition of 
Volume I, Section $W 5B of the N.C. State 
Building Code as follows: 

(1) Mental retardation »f othor developmental 
Developmental disability facilities: 

(A) group homes for adults with mental 
retardation bf othor developmental disa- 
bilities serving five or fewer clients all of 
whom are non-ambulatory or unable to 
respond and evacuate without assistance, 
certifiable for Medicaid reimbursement 
and staffed 24 hours per day with at least 
two staff awake at all times; 

(B) group homes for adults with mental 
retardation ef other developmental disa- 
bilities serving more than six clients and 
fewer than ten clients who are ambulatory 
and able to respond on their own to 
emergency conditions; 

(C) group homes for adults with mental 
retardation e*= othor developmental disa- 
bilities serving six or fewer clients of 
whom one, two or three are non- 
ambulatory or unable to respond on their 
own to emergency conditions; 

(D) group homes for children with mental 
retardation ef other developmental disa- 
bilities serving five or fewer clients all of 
whom are non-ambulatory or unable to 
respond and evacuate without assistance, 
certifiable for Medicaid reimbursement, 
and staffed 24 hours per day with at least 
two staff awake at all times; 

(E) group homes for children with mental 
retardation e* oth e r developmental disa- 
bilities serving six or fewer clients of 
whom one, two or three are non- 
ambulatory or unable to respond on their 
own to emergency conditions; 

(F) group homes for individuals with men 
tal retardation &? othor developmental 
disabilities and behavior disorders serving 
five or fewer clients all of whom are non- 
ambulatory or unable to respond and 
evacuate without assistance, certifiable for 
Medicaid reimbursement, and staffed 24 
hours per day with at least two staff awake 
at all times; 

(G) group homes for individuals with 
mental retardation e* other developmental 
disabilities and with behavior disorders 
serving six or fewer of whom one, two or 
three are non-ambulatory or unable to 
respond on their own to emergency con- 
ditions; 

(H) supervised independent living boarding 
homes for adults with mental r e tardation 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



1448 



PROPOSED RULES 



&¥ other de\ r elopmental disabilities serving 
more than six clients and fewer than ten 
clients who are ambulator," and able to 
respond on their own to emergency con- 
ditions: and 
(I) community center-based respite for in- 
dividuals with mental retardation, other 
developmental disabilities, developmental 
delays or at risk for these conditions serv- 
ing six or fewer clients of whom one, two 
or three are non-ambulatory or unable to 
respond on their own to emergency con- 
ditions. 
(2) Mental health facilities: residential treat- 
ment for individuals serving seven to nine 
clients who are ambulatory and able to 
respond on their own and evacuate the 
facility without assistance, 
(f) In addition to Building Code requirements 
specified in (b) and (c) of this Rule, new facilities 
specified in (1), (2) and (3) of this Paragraph shall 
meet the requirements of the current edition of 
Volume I. Section 409, Institutional Occupancy 
(I) of the N.C. State Building Code as follows: 
( 1 ) Mental retardation m other developmental 
Developmental disability facilities: 

(A) specialized community residential ser- 
vices for individuals with mental retarda 
***«■ &f other developmental disabilities; 

( B ) group homes for adults with mental 
retardation e* other developmental disa- 
bilities serving six or fewer clients of 
whom more than three are non- 
ambulatory or unable to respond on their 
own to emergency conditions: 

(C) group homes for individuals with men 
tel retardation ©f other developmental 
disabilities and with behavior disorders 
serving six or fewer clients of whom more 
than three are non-ambulatory or unable 
to respond on their own to emergency 
conditions: 

(D) group homes for children with mental 
r e tardation @f other developmental disa- 
bilities serving six or fewer clients of 
whom more than three are non- 
ambulatory or unable to respond on their 
own to emergency conditions; and 

(E) community center-based respite for in- 
dividuals with mental retardation, other 
developmental disabilities, developmental 
delays or at risk for these conditions serv- 
ing five or fewer clients of whom more 
than three are non-ambulatory or unable 
to respond on their own to emergency 
conditions. 

(2) Mental health facilities: 



(A) inpatient psychiatric facilities for indi- 
viduals who are mentally ill; 

(B) residential acute treatment for adult and 
elderly individuals who are mentally ill; 
and 

(C) residential treatment for children and 
adolescents serving ten or more clients. 

(3) Substance abuse faculties: 

(A) inpatient hospital treatment for indi- 
viduals who are substance abusers; and 

(B) nonhospital medical detoxification for 
individuals who are substance abusers. 

(g) In addition to Building Code requirements 
specified in (b) and (c) of this Rule, new facilities 
specified in (1), (2), (3) and (4) of this Paragraph 
shall meet the requirements of the current edition 
of Volume I, Section 405, Business Occupancy 
(B) of the N.C. State Building Code as follows: 

( 1 ) Mental retardation e* other developmental 

Developmental disability facilities: adult 
developmental activity programs for indi- 
viduals with substantial mental r e tarda 
tion. developmental disabilities or severe 
physical disabilities; e*= other substantial 
developmental disabilities: 

(2) Mental health facilities: 

(A) psychosocial rehabilitation programs 
for individuals who are chronically men- 
tally ill: 

(B) day treatment for children and adoles- 
cents who are emotionally disturbed; and 

(C) partial hospitalization programs (PHP) 
for adult and elderly individuals who are 
acutely mentally ill. 

(3) Substance abuse faculties: 

(A) outpatient treatment for individuals 
who are substance abusers; 

(B) outpatient detoxification for individuals 
who are substance abusers; and 

(C) outpatient methadone services for indi- 
viduals who are narcotic abusers. 

(4) Facilities serving one or more disability: 

(A) sheltered workshops: and 

(B) day activity faculties for adult and el- 
derly individuals who are mentally ill 
and or substance abusers. 

(hi In addition to Building Code requirements 
specified in (b) and (c) of this Rule, new facilities 
specified in (1) and (2) of this Paragraph shall 
meet the requirements of the current edition of 
Volume I. Section 406. Educational Occupancy 
(E) of the N.C. State Building Code as follows: 
(1 ) Mental retardation w other d e v e lopm e ntal 
Developmental disability facilities: 
before after school and summer develop- 
mental day services for children with 
m e ntal retardation »f other developmental 
disabilities; and 



1449 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



PROPOSED RULES 



(2) Mental health facilities: day treatment for 
children and adolescents who are emo- 
tionally disturbed, 
(i) In addition to Building Code requirements 
specified in (b) and (c) of this Rule, new facilities 
specified in (1) and (2) of this Paragraph shall 
meet the requirements of the current edition of 
Volume I, General Construction, Section 411, 
Residential Occupancy (R) of the N.C. State 
Building Code as follows: 

(1) Substance abuse facilities: 

(A) social setting detoxification for more 
than six individuals who are alcoholics; 

(B) residential treatment or rehabilitation 
for more than six individuals who are 
substance abusers; and 

(C) halfway houses for more than six indi- 
viduals who are substance abusers. 

(2) Facilities serving one or more disability: 
residential therapeutic (habilitative) camps 
for children and adolescents. 

(j) Volume I (General Construction) is avail- 
able at a cost often dollars ($10.00); Volume I-B 
(Uniform Residential Building Code) at a cost 
of two dollars ($2.00); Volume II (Plumbing) at 
a cost of three dollars ($3.00); Volume III 
(Heating and Air Conditioning) at a cost of four 
dollars and fifty cents ($4.50); and Volume IV 
.(Electrical) at a cost of fifteen dollars ($15.00) 
from the N.C. Department of Insurance, P.O. 
Box 26387, Raleigh, N.C. 27611. 

(k) The material which is adopted by reference 
in this Rule is adopted in accordance with the 
provisions of G.S. 150B-14(c). 

Statutory Authority G.S. 122C-26; 143B-147. 

SUBCHAPTER 14M - LICENSURE RULES FOR 

MENTAU RETARDATION/DEVELOPMENTAL 

DISABILITIES FACILITIES 

SECTION .0700 - COMMUNITY RESPITE 

SERVICES FOR INDIVIDUALS WITH MENTAL 

RETARDATION: OTHER DEVELOPMENTAL 

DISABILITIES: DEVELOPMENTAL DELAYS 

OR AT RISK FOR THESE CONDITIONS 

.0704 PROGRAM DIRECTOR 

(a) Each governing body shall designate a pro- 
gram director. 

(b) The Program Director shall have as e4«- 
cational background a degree from an accredited 
college or university in social work, education, 
nursing, psychology or related health field; or an 
educational background in one of the aforemen- 
tioned fields; or shall have at least two years' di- 
rect service experience in human service 
programs. 



Statutory Authority G.S. 122C-26; I43B-I47. 

.071 1 CENTER-BASED RESPITE: STAFF 
REQUIRED 

(a) In a community center-based respite which 
serves four or more clients, a minimum of two 
staff members shall be on duty, during During 
waking hours, when five or fewer clients are in 
the facility, a minimum ef twe- staff momboro 
ohall be »» duty. If more than five clients are 
being served, a staff t» cliont ratio »f 4h4 mini- 
mum ratio of one staff member for each addi- 
tional five or fewer clients shall be maintained. 

(b) In a community center-based respite which 
serves three or fewer clients, a minimum of two 
staff members shall be on duty, during waking 
hours, unless emergency backup procedures are 
sufficient to allow only one staff member on 
duty. 

(c) (-b) During sleeping hours, a minimum of 
two staff members shall be available in the im- 
mediate area unless emergency backup proce- 
dures are sufficient to allow only one staff 
member on duty. In such instances, minimum 
acceptable emergency procedures shall include 
the following: 

(1) written agreements with emergency med- 
ical transport services; 

(2) availability of on-call emergency backup 
that can arrive at the facility within 20 
minutes; and 

(3) notification to parents or the legally re- 
sponsible person that only one staff 
member may be on duty during sleeping 
hours. 

(d) fe} On occasions when only one client is in 
the facility, a minimum of one staff member shall 
be on duty during waking and sleeping hours. 

(e) (4} Each facility shall operate 24 hours per 
day, seven days per week, 12 months per year. 

(f) £e) Waking and sleeping hours of the facility 
shall be designated and posted by the Program 
Director. The Program Director shall designate 
when the hours are in effect. 

Statutory Authority G.S. 122C-26; 143B-I47. 

CHAPTER 18 - MENTAL HEALTH: OTHER 
PROGRAMS 

SUBCHAPTER 18Q - GROUP HOMES FOR 

ADULTS WITH MENTAL RETARDATION OR 

OTHER DEVELOPMENTAL DISABILITIES 

SECTION .0500 - COMMUNITY RESPITE 

SERVICES FOR INDIVIDUALS WITH MENTAL 

RETARDATION, OTHER DEVELOPMENTAL 

DISABILITIES, DEVELOPMENTAL DELAYS 

OR AT RISK FOR THESE CONDITIONS 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



1450 



PROPOSED RULES 



.0520 INTRODUCTION 

(a) Community respite is a residential support 
service which provides periodic relief for a family 
or family substitute on a temporary basis. While 
overnight service is available, community respite 
may be provided to individuals for periods ot less 
than 24 hours on a day or evening basis. 

(b) Attention to the client's everyday nutri- 
tional, recreational, emotional, spiritual develop- 
mental and physical needs are elements of respite 
care. The service is primarily a family support 
service rather than an habilitative service; how- 
ever, such activities as training, therapy and 
medical treatment, if provided, are ancillary to 
the provision of respite care. 

(c) The following three models are examples 
of respite services: 

( 1 ) center-based respite is a residential service 
in which the individual is served at a des- 
ignated facility which has potential for 
overnight care. While an overnight ca- 
pacity is always a part of this service, a 
respite center may, in addition, provide 
respite services to individuals for periods 
of less than twenty-four hours on a day 
or evening basis; 

(2) private home respite is a residential service 
in which the area program or its contract 
agency contracts with community citizens 
to serve individuals in their own home on 
an overnight basis; or 

(3) companion rat tor respite is a support ser- 
vice in which a trained respite provider is 
scheduled to care for the individual in a 
variety of settings, including the individ- 
ual's own home This wrvico is or other 
location not subject to licensure. 



Statutory Authority G.S. 143B-I47. 

.0545 LENGTH OF STAY 

Each community respite service not subject to 
licensure under G.S. 122C, Article 2 shall comply 
with the provisions of K) NCAC 14M .0708. 

Statutory Authority G.S. 143B-147. 

.0546 PERSONAL CARE 

Each community respite service not subject to 
licensure under G.S. 122C, Article 2 shall comply 
with the provisions of 10 NCAC 14M .0707. 

Statutory Authority G.S. I43B-147. 

.0547 RESPITE ACTIVITIES 

Each community respite service not subject to 
licensure under G.S. 122C, Article 2 shall comply 
with the provisions of 10 NCAC 14M .0709. 

Statutory Authority G.S. 143B-147. 

.0548 MEDICAL STATEMENT 

Each community respite service not subject to 
licensure under G.S. 122C. .Article 2 shall comply 
with the provisions of K) NCAC 14M .0710. 

Statutory Authority G.S. 143B-147. 

.0549 PRIVATE HOME SERVICES: 
PROVIDER APPLICATION 

Each community respite service not subject to 
licensure under G.S. 122C. Article 2 shall comply 
with the provisions of 10 NCAC 14M .0713. 



Statutory- Authority G.S. I43B-J47. 



Statutory Authority G.S. I43B-I47. 



.0542 PROGRAM DIRECTOR 

Each community respite service not subject to 
licensure under G.S. 122C. Article 2 shall comply 
with the provisions of U) NCAC 14M .0704. 

Statutory Authority G.S. J 43 B-/ 47. 

.0543 FAMILY SERVICES COORDINATOR 

Each community respite service not subject to 
licensure under G.S. 122C. Article 2 shall comply 
with the provisions of 10 NCAC 14M .0706. 

Statutory Authority G.S. 143B-147. 

.0544 AGE OF STAFF MEMBERS 

Each community respite service not subject to 
licensure under G.S. 122C. Article 2 shall comply 
with the provisions of 10 NCAC 14M .0705. 



.0550 PRIVATE HOME SERVICES: 
PROVIDER TRAINING 

Each community respite service not subject to 
licensure under G.S. 122C. Article 2 shall comply 
with the provisions of 10 NCAC 14M .0714. 

Statutory Authority G.S. 143B-147. 

.0551 PRIVATE HOME SERVICES: 

AGREEMENT WITH PROVIDERS 

Each community respite service not subject to 
licensure under G.S. 122C. .Article 2 shall comply 
with the provisions of 10 NCAC 14M .0715. 

Statutory Authority G.S. 143B-147. 

.0552 PRIVATE HOME SERVICES: RESPITE 
SERVICE RESPONSIBILITIES 



1451 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



PROPOSED RULES 



Lach community respite service not subject to 
licensure under G.S. 1 22C\ Article 2 ^hall comply 
with the provisions o[ 111 NCAC 14M .0716. 

Statutory Authority G.S. I43B-147. 

****************** 



Authority G.S. 10SA-25(b); 108A-54; 108A-55; 
S.L. I9S5, c. 479, s. 86; 42 C.F.R. 447, Subpart 
C. 

TITLE ISA - DEPARTMENT OF 

ENVIRONMENT, HEALTH, AND 

NATURAL RESOURCES 



lyotice is hereby given in accordance with G.S. 
150B-21.2 that D1IR Dh-ision of Medical Assist- 
ance intends to amend nde(s) cited as 10 NCAC 
2611 .0101. 

1 he proposed effective date of this action is April 
1, 1992. 

1 he public hearing will be conducted at 1:30 
p.m. on January 17, 1992 at the North Carolina 
Division of Medical Assistance, 1985 L'mstead 
Drive, Room 132, Raleigh, N.C. 27603. 

IXeason for Proposed Action: To pay state- 
operated nursing care facilities reasonable costs. 



No 



Cc 



■ omment Procedures: Written comments con- 
cerning this amendment must be submitted by 
February 1, 1992. to: Division of Medical As- 
sistance, 19S5 L'mstead Drive, Raleigh, North 
Carolina 27603. ATTN.: Bill Hotlel, APA Co- 
ordinator. Oral comments may be presented at 
the hearing. In addition, a fiscal impact statement 
is available upon written request from the same 
address. 



otice is hereby given in accordance with G.S. 
150B-21.2 that the Commission for Health 
Services; Department of Environment, Health, and 
Natural Resources intends to amend rules cited 
as 15 A NCAC ISA .1004, .1510, .1802, .1809, 
.1812, .2202, .2624, .2629 - .2630; ISC .1508, 
.1510, .1515 - .1518, .1523, .1527; 19A .0202; I9B 
.0203. .0302, .0304, .0309, .0311. .0320 - .0321; 
21 F .0701; 24A .0202. .0303; adopt rules cited as 
15A NCAC ISA .3001 - .30/8; ISC .1536, .2101 
- .2105; 21 E .0501: and repeal rule cited as J5A 
NCAC 19B .0305. 



Th 



he proposed effective date of this action is April 
I, 1992. 

J he public hearings will be conducted at the fol- 
lowing dates, times and locations: 

January 22, 1992 

7:30 p.m. 

Willis Building Auditorium 

Eastern North Carolina Regional 

Development Institute 

Corner of First and Reade Streets 

Greenville. NC 



CHAPTER 26 - MEDICAL ASSISTANCE 

SUBCHAPTER 2611 - REIMBURSEMENT PLANS 

SECTION .0100 - REIMBURSEMENT LOR 
Nl RSINC FACILITY SERVICES 

.0101 REIMBURSEMENT PRINCIPLES 

All certified nursing facilities participating in the 
North Carolina Medicaid Program are reim- 
bursed on a prospective basis as set forth here- 
under, except that state-operated facilities will be 
reimbursed their reasonable and allowable costs 
in accordance with the Medicare principles of 
reimbursement and with the provisions of Rules 
.0103 and .0104 of this plan. This plan is devel- 
oped in accordance with the requirements of 42 
CFR 447 Subpart C - Payment for Inpatient 
Hospital and Long-Term Care Facility Services. 
Providers must comply with all federal regu- 
lations and with the provisions of this plan. 



January 23, 1992 

7:30 p.m. 

Auditorium 

Forsyth-Stokes Mental Health Center 

725 Highland Avenue 

Winston-Salem, NC 

January 27, 1992 

1:30 p.m. 

First Floor Auditorium 

Highway Building 

1 South Wilmington Street 

Raleigh, NC 

January 28, 1992 

7:30 p.m. 

Elevated Lecture Room 

Simpson Administration Building 

A shevil/e- Buncombe Technical 

Community College 

340 Victoria Road 

Asheville, NC 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



1452 



PROPOSED RULES 



R 



e as oris for Proposed Actions: 



ISA NCAC 18A .1004 - the changes in this rule will 
allow purchasers of summer camps to obtain per- 
mits immediately. Additionally, it will allow the 
local health department to place conditions on the 
permit, notifying all parties that certain actions 
must be done or that certain limits (such as in 
number of people) must be maintained. 

ISA NCAC 18A .1510 - needs to be amended to 
allow for the "dry cell" concept to be used in the 
construction of new local confinement facilities 
(jails). This proposal was requested by the N.C. 
Jail Standards Task Force. The amendment 
would make this rule consistent with the rules of 
the Social Services Commission. 

15A NCAC 18A .1802 - the changes in this rule will 
allow purchasers of hotels, motels, etc., to receive 
permits immediately, yet still get repairs made. 
It will also allow the local health department to 
place conditions on permits, giving notice to ev- 
eryone of actions that need performing and limits 
(such as number of persons) that should be 
maintained. 

15A NCAC I8A .1809 - the changes in this rule will 
correct an error of omission made in a previous 
rule change. 

15A NCAC 18A .1812 - the changes in this rule will 
bring the rule into accordance with the recent 
changes in G.S. 72-7. 

15A NCAC 18A .2202 - the changes in this rule will 
allow purchasers of bed and breakfast homes to 
obtain permits immediately. Additionally, it will 
allow the local health department to place condi- 
tions on the permit, notifying all parties that cer- 
tain actions must be taken or certain limits (such 
as number of people) must be maintained. 

I5A NCAC 18A .2624, .2629 - the changes in these 
rules will allow toilet rooms in malls, restaurants, 
airports, schools, coliseums, etc., to be built with 
baffle walls as opposed to self-closing doors. This 
is a trend in large, public buildings. 

ISA NCAC 18A .2630 - the changes in this rule will 
bring the lighting requirements in line with the 
recommendations of the Illuminating Engineering 
Society and with other states. 

ISA NCAC 18A .3001 - .3018 - these rules are being 
presented in response to changes made by the 
Legislature in G.S. 130A-248. 



15A NCAC I8C .1508, .1510, .1515 - .1518, .1523, 
.1527, .1536 - theses rule changes provide for the 
new and revised monitoring requirements for in- 
organic chemicals, synthetic organic chemicals, 
and volatile organic chemicals. These Rule 
changes are needed to meet primary requirements 
for the State Public Water System Supervision 
Program. 

These Rules affect the expenditures or revenues 
of local funds. A fiscal note was submitted to the 
Fiscal Research Division on November 26, 1991 , 
OSBM on November 26, 1991, N.C. League of 
Municipalities on December 4, 1991 , and N.C. 
Association of County Commissioners on Decem- 
ber 4, 1991. 

ISA NCAC 18C .2101 - .2105 - the 1991 North 
Carolina General Assembly ratified Senate Bill 
449, creating General Statute 130 A- 328 entitled 
"Community water system operating permit and 
permit fee." Since the statute contains the fee 
amounts, these rules are needed to facilitate the 
collection of the fees and the issuance of the re- 
quired operating permits. 

These Rules affect the expenditures or revenues 
of local funds. A fiscal note was submitted to the 
Fiscal Research Division on August 20. 1991, 
OSBM on August 20. 1991, N.C. League of 
Municipalities on August 20, 1991, and N.C. As- 
sociation of County Commissioners on A ugust 20, 
1991. 

15A NCAC 19A .0202 - this change is necessary to 
improve the effectiveness of our HIV partner no- 
tification program by restricting the use of forms 
for partner notification to persons tested 
anonymously and to permit recovety of the cost 
of HIV testing from Medicaid and other third 
party payors, particularly for prenatals. 

ISA NCAC 19B .0203 - to make blood permits ex- 
piration consistent with breath permits. 

ISA NCAC 19B .0301, .0304 - .0305, .0309, .0311, 
.0320, .0321 - to implement new statewide program 
designated by 1991 General Assembly (North 
Carolina Legislative Session 1991, Chapter 689, 
Section 233.1 and 354), and Rule .0304 makes 
Rule .0305 unnecessary, and Rule .0309 was not 
amended when Rules were recodified and Rule 
.0311 same as Rule .0304. 

15A NCAC 21 E .0501 - the purpose of this legis- 
lation is to authorize the Department to provide 
newborn screening services and for the Commis- 
sion for Health Services to adopt regulations for 



1453 



6: 1 9 NOR TH CAROLINA REGIS TER January 2, 1 992 



PROPOSED RULES 



newborn screening and to authorize the Depart- 
ment to charge for this service. 

15A NCAC 21 F .0701 - this rule is being amended 
to put back into the Code the common program 
practice of rostering these individual applicants. 

ISA NCAC 24A .0202 - this change is needed to 
comply with recent statutory changes. 

ISA NCAC 24A .0303 - this proposed rule amend- 
ment would make it clear to medical service pro- 
viders that the payment programs of EHNR do 
not pay Medicaid co-payments. The Department 
does not authorize payments for services received 
by Medicaid clients unless acting as a Medicaid 
provider itself and receiving reimbursement from 
Medicaid. 



Co 



, omment Procedures: A 11 persons interested in 
these matters are invited to attend the public 
hearing. Written comments may be presented at 
the public hearing or submitted to John P. 
Barklev, Department of Justice. P.O. Box 629, 
Raleigh, NC 27602-0629, (919) 733-46 IS. If you 
desire to speak at the public hearing, notify John 
P. Barkley at least 3 days prior to the public 
hearing. Oral presentation lengths may be limited 
depending on the number of people that wish to 
speak at the public hearing. Only persons who 
have made comments at a public hearing or who 
have submitted written comments will be allowed 
to speak at the Commission meeting. Comments 
made at the Commission meeting must either 
clarify previous comments or address proposed 
changes from staff pursuant to comments made 
during the public hearing process. 

IT IS VERY IMPORTANT THAT ALL INTER- 
ESTED AND POTENTIALLY AFFECTED PER- 
SONS, GROUPS, BUSINESSES, ASSOCIA- 
TIONS, INSTITUTIONS, OR AGENCIES MAKE 
THEIR MEWS AND OPINIONS KNOWN TO 
THE COMMISSION FOR HEALTH SERVICES 
THROUGH THE PUBLIC HEARING AND COM- 
MENT PROCESS, WHETHER THEY SUPPORT 
OR OPPOSE ANY OR ALE PROVISIONS OF 
THE PROPOSED RULES. THE COMMISSION 
MAY MAKE CHANCES TO THE RITES AT THE 
COMMISSION MEETING IF THE CHANGES 
COMPLY Willi U.S. l50B-21.2(f). 



CHAPTER 18 -ENVIRONMENTAL HEALTH 

SUBCHAPTER IX A - SANITATION 

SECTION .1000 - SANITATION OF SUMMER 
CAMPS 



.1004 PERMITS 

(a) No person shall operate a summer camp 
within the State of North Carolina who does not 
possess an unrevoked permit or transitional per- 
mit from the Department. No permit to operate 
shall be issued until an inspection by a sanitarian 
shows that the establishment complies with this 
Section. Permits issued to one person are not 
transferable to others. Permits or transitional 
permits are issued by and inspections made by 
' . . unitarian! ! , the Department. 

(b) If camp food service is provided by a 
caterer, the overall responsibility for food service 
sanitation remains with the camp management. 

(c) Upon transfer of ownership of an existing 
summer camp, the Department shall complete 
an inspection. If the establishment satisfies all 
the requirements of Uhe rules, a permit shall he- 
issued. If the establishment does not satisfy all 
the requirements o[ the rules, a permit shall not 
be issued. 1 lowever. if the Department deter- 
mines that the noncompliant items are con- 
struction or equipment problems that do not 
represent an immediate threat to the public 
health, a transitional permit may be issued. The 
transitional permit shall expire L )(> days after t he- 
date, of issuance, unless suspended or revoked 
before that date, and shall not be renewed. I pon 
expiration of the transitional permit, the owner 
or operator shall have corrected the 
noncompliant items and obtained a permit, or 
the summer camp shall not continue to operate. 

(d) I he Department may impose conditions 
on the issuance of a permit or transitional permit. 
Conditions may be specified tor one or more of 
the following areas: 



ill 

til 

15) 
(61 

<2i 

(81 



I he number of persons served. 
The categories of food served, 
lime schedules in completing minor con- 
struction items. 

Modification or maintenance of water 
supplies 



pur 



Use o[ facilities for more than one 
pose. 

Continuation of contractual arrangements 
upon which basis the permit was issued. 

Submission and approval of plans for 
renovation. 

Anv other conditions necessary for the 
summer camp to remain in compliance 
with this Section. 
(e) fe} A permit or transitional permit shall be- 
immediately revoked in accordance with G.S. 
130A-23(d) for failure of the facility to maintain 
a minimum grade of C. A permit or transitional 
permit may otherwise be suspended or revoked 
in accordance with 130A-23. A new permit to 
operate shall be issued only after the cstablish- 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



1454 



PROPOSED RULES 



ment has been resurveyed reinspected by a 
sanitarian the Department and found to comply 
with this Section. This rosurvoy v41i reinspection 
shall be conducted within a reasonable length of 
time after the request is made by the operator. 

Statutory Authority G.S. 130A-24S. 

SECTION .1500 - SANITATION OF LOCAL 
CONFINEMENT FACILITIES 

.1510 TOILET, HANDWASHING AND 
BATHING FACILITIES 

(a) Each cell shall be provided with access to 
toilet and handwashing facilities, and soap and 
individual towels shall be provided. The fixtures 
shall be kept clean and in good repair. 

(b) Each cell block or section shall be provided 
with bathing faculties which shall be easily 
cleanable and shall be kept clean. 

(c) Convenient toilet facilities shall be provided 
for kitchen workers. 

(d) Handwashing facilities with hot and cold 
water and mixing faucet shall be provided in 
kitchens and any food preparation areas in addi- 
tion to any lavatories which may be provided at 
workers' toilet rooms. 

(e) A supply of hot water adequate to meet all 
requirement for hot water in these Rules shall be 
provided. 

(f) Plumbing shall comply with the North 
Carolina State Building Code, Volume II. 

Statutory! Authority G.S. 153 A- 226. 

SECTION .1800 -SANITATION OF LODGING 
PLACES 

.1802 PERMITS 

(a) No person shall operate a lodging place 
within the State of North Carolina who does not 
possess an unrevoked permit or transitional per- 
mit from the Department. 

(b) No permit to operate shall be issued until 
a sanitary inspection by a representative of the 
Department shows that the establishment com- 
plies with these Rules. Permits tssaed to e»e 
p e rson ase set transferable to others. 

(c) I'pon transfer of ownership of an existing 
lodging place, the Department shall complete an 
inspection. If the establishment satisfies aH the 
requirements of the rules, a permit shall be is- 
sued. If the establishment does not satisfy all the 
requirements of the rules, a permit shall not be 
issued. 1 Iowcver, if the Department determines 
that the noncompliant items are construction or 
equipment problems that do not represent an 
immediate threat to the public health, a transi- 
tional permit mav be issued. The transitional 



permit shall expire 90 days after the date of issu- 
ance, unless suspended or revoked before that 
date, and shall not be renewed. Upon expiration 
of a transitional permit , the owner or operator 
shall have corrected the noncompliant items and 
obtained a permit, or the lodging place shall not 
continue to operate. 

(d) The Department may impose conditions 
on the issuance of a permit or a transitional per- 
mit. Conditions mav be specified for one or 
more of the following areas: 

The number of bedrooms or persons 



111 

<il 

[61 



housed. 

The amount of laundry or warewashing 
equipment on the premises. 
Time schedules in completing minor con- 
struction items. 

Modification or maintenance of water 



supplies. 

Use of facilities for more than one 
pose. 

Continuation of contractual arrangements 
upon which basis the permit was issued. 

Submission and approval of plans for 
renovation. 

Any other conditions necessary for a 
lodging place to remain m compliance 
with this Section. 

(e) {ej Permits or transitional permits are issued 
by and inspections made by sanitarians. the 
Department. 

(f) (d-)- A permit or transitional permit shall be 
immediately revoked in accordance with G.S. 
130A- 23(d) for failure of the facility to maintain 
a minimum grade of C. A permit or transitional 
permit may otherwise be suspended or revoked 
in accordance with 130A-23. A new permit to 
operate shall be issued only after the establish- 
ment has been resurveyed reinspected by a 
sanitarian the Department and found to comply 
with this Section. This resurvcy reinspection will 
be conducted within a reasonable length of time 
after the request is made by the operator. 

Statutory Authority G.S. 130 A- 248. 

.1809 LAVATORIES AND BATHS 

(a) Baths, lavatories, and toilets shall be pro- 
vided for each room or unit in establishments 
constructed on or after December 1, 19S8. Such 
fixtures shall be kept clean and in good repair. 

(b) All lavatory and bathing facilities shall in- 
clude hot and cold running water under pressure, 
individual towels, and soap. Eloors and walls 
shall be constructed of smooth, non-absorbent, 
washable materials. 

(c) Floors, walls, and ceilings shall be kept 
clean and in good repair. 



1455 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



PROPOSED RULES 



(d) AH sewage and other liquid wastes shall be 
disposed of in a public sewer system or, in the 
absence of a public sewer system, by an ap- 
proved, properly operating, sanitary sewage sys- 
tem. 

Statutory Authority G.S. 130A-248. 

.1812 BEDROOMS 

(a) Bedrooms shall have adequate lighting and 
ventilation, either natural or artificial. Lighting 
shall be adequate for reading and to enable thor- 
ough cleaning. Where natural ventilation only 
is provided, windows shall equal at least one- 
eighth of the floor area. Windows shall be kept 
clean and in good repair. In the absence of 
windows, adequate air conditioning and adequate 
artificial lighting constitutes satisfactory compli- 
ance. 

(b) Approved window coverings shall be pro- 
vided to insure privacy for guests, and shall be 
kept clean and in good repair. 

(c) Two sheets shall be provided for each bed. 
The lower sheet shall be of sufficient length to 
fold under both ends of the mattress where con- 
tour sheets are not used. The upper sheet shall 
be of sufficient length to fold under the mattress 
at the lower end, and to fold over the cover for 
at least six inches at the top end. All sheets shall 
be of sufficient width to tuck under the mattress 
and shall be clean for each new occupant. All 
bed linens and furnishings shall be kept clean and 
in good repair. 

(d) The floors, walls, and ceilings of bedrooms, 
closets, and storage areas shall be kept clean and 
in good repair. Furniture, shades, curtains, car- 
pets and other accessories shall be kept clean and 
in good repair. 

(e) All lodging establishments shall be kept free 
of animal: . , fowl, bedbugs, rodents, roaches, flies 
and other vormin. pests. Bedrooms having 
outside openings shall be effectively screened un- 
less air conditioned. 

Statutory Authority G.S. 130A-24S. 

SECTION .2200 - SANITATION OE BED AND 
BREAKFAST HOMES 

.2202 PERMITS 

(a) No person shall operate a bed and breakfast 
home within the State of North Carolina who 
does not possess an unrevoked permit from the 
Division. 

(b) No permit to operate shall be issued to a 
person until a sanitary survey by a sanitarian an 
inspection by the Division shows that the home 
complies with the rules of this Section. 



(c) A permit issued te- &fte p e rson is »e4- 
transferable te- another person. Upon transfer 
of ownership of an existing bed and breakfast 
home, the Division shall complete an inspection. 
If the establishment satisfies all the requirements 
of the rules, a permit shall be issued. If the es- 
tablishment does not satisfy all the requirements 
of the rules, a permit shall not be issued. How- 
ever, if the Department determines that the 
noncompliant items are construction or equip- 
ment problems that do not represent an imme- 
diate threat to the public health, a transitional 
permit may be issued. The transitional permit 
shall expire 90 days from the date of issuance, 
unless suspended or revoked before that date, and 
shall not be renewed. Upon expiration of the 
transitional permit, the owner or operator shall 
have corrected the noncompliant items and ob- 
tained a permit, or the bed and breakfast home 
shall not continue to operate. 

(d) The Division may impose conditions on the 
issuance of a permit or transitional permit. 
Conditions may be specified for one or more of 
the following areas: 

( 1 ) The number of bedrooms or persons 
served. 

(2) The amount of laundry or warewashing 
equipment on the premises. 

(3) Time schedules in completing minor con- 
struction items. 

Modification or maintenance of water 



(11 
(51 

01 



supplies. 

Use of facilities for more than one pur- 
pose. 

Continuation "of contractual arrangements 
upon which basis the permit was issued. 

Submission and approval of plans for 
renovation. 

Any other conditions necessary for a bed 
and breakfast home to remain m compli- 
ance with this Section. 

(e) f4f A permit is issued by and inspections are 
made by local and state sanitarians who are au- 
thorized representatives of the Division. 

(f) (e) A permit or transitional permit shall be 
immediately revoked in accordance with G.S. 
130A-23(d) for failure of the facility to maintain 
a minimum grade of C. A permit or transitional 
permit may otherwise be suspended or revoked 
in accordance with 130A-23. A new permit to 
operate shall be issued only after the establish- 
ment has been resurve) ed reinspected by a 
sanitarian the Division and found to comply with 
this Section. This roourvey reinspection will be 
conducted within a reasonable length of time af- 
ter the request is made by the operator. 

Statutory Authority G.S. 130 A- 250. 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



1456 



PROPOSED RULES 



SECTION .2600 - SANITATION OF 

RESTAURANTS AND OTHER 

FOODHANDLING ESTABLISHMENTS 

.2624 TOILET FACILITIES 

(a) Even" restaurant shall be provided with 
toilet facilities for each sex conveniently located 
and readily accessible at all business hours. Un- 
less specified elsewhere in these Rules, all restau- 
rants shall have toilets which are convenient and 
accessible to employees and customers. Toilets 
for patrons shall be so located that the patrons 
do not pass through the kitchen to enter the toi- 
let rooms. Intervening rooms or vestibules, if 
provided, shall be constructed and maintained in 
accordance with this Rule. Toilets shall be in the 
proximity of the restaurant and under control of 
the management. New construction shall com- 
ply with North Carolina State Building Code re- 
quirements for handicapped persons. The North 
Carolina State Building Code has been adopted 
by reference in accordance with G.S. 1 SOB- 14(c). 
Copies of the North Carolina State Building 
Code may be obtained from the North Carolina 
Department of Insurance, P.O. Box 26387, 
Raleigh, North Carolina 2761 1. Floors and walls 
shall be constructed of non-absorbent, washable 
materials. Floors, walls, and ceilings shall be 
kept clean and in good repair. Toilet rooms shall 
be provided with self-closing doors, and kept free 
of flies and storage. Windows shall be screened 
if used for ventilation. Fixtures shall be kept 
clean and in good repair. 

(b) Signs shall be posted to advise the public 
of the locations and identities of the toilet rooms. 
Durable, legible signs which read that employees 
must wash their hands before returning to work 
shall be posted or stenciled conspicuously in each 
employees' toilet room. 

(c) Screens and doors are not required for toilet 
rooms at stadiums or facilities in which toilet 
rooms open into the interior of a building and 
the exterior doors of the building are self-closing. 

(d) (e) All toilet wastes and other sewage shall 
be disposed of in a public sewer system or, in the 
absence of a public sewer system, by an approved 
sanitary sewage system. 

Statutory Authority G.S. 130A-24S. 

.2629 DOORS AND WINDOWS 

(a) A41 op e ning;' . Fxcept as specified in Rule 
.2624(c) of this Section, outside doors shall be 



Statutory Authority G.S. / 30 A- 248. 

.2630 LIGHTING 

(a) All rooms areas in which food is handled, 
or prepared, or in which utensils are washed, 
shall be provided with at least 70 foot candles 50 
foot-candles of light on food preparation work 
levels and at utensil washing work levels. At 
least 30 foot candloo 10 foot-candles of light at 
30 inches above the floor shall be provided in all 
other areas, aft4 rooms including storage rooms 
and walk-in units. This shall not include dining 
and lounge areas except during cleaning oper- 
ations. Fixtures shall be kept clean and in good 
repair. 

(b) Fight bulbs in food preparation, storage, 
and display areas shall be shatter-proof or 
shielded so as to preclude the possibility of bro- 
ken bulbs or lamps falling into food. Shatter- 
proof or shielded bulbs need not be used in food 
storage areas where the integrity of the unopened 
packages will not be affected by broken glass 
falling onto them and the packages, prior to be- 
ing opened, are capable of being cleaned. 

(c) Heat lamps shall be protected against 
breakage by a shield surrounding and extending 
beyond the bulb, leaving only the face of the bulb 
exposed. 

Statutory Authority G.S. 130A-24S. 

SECTION .3000 - BED AND BREAKFAST INNS 

.3001 DEFINITIONS 

The following definitions shall apply in the in- 
terpretation and enforcement of this Section. 

( 1) ''Approved" means determined bv the De- 
partment to be in compliance with this Sec- 
tion. Food which complies with the 
requirements of t]ie North Carolina Depart- 
ment of Agriculture or the United States 
Department of Agriculture and the require- 
ments of this Section shall be considered as 
approved. 

(2) "Bathroom" means a room with at least 
one shower or tub, water closet and 
lavatory. 



■elf-closing and all windows into the outer air 
shall be screened unless other effective means are 
provided to keep the establishment free of flies. 
{hi Out ' .id i ? doors shall be s e lf closing. 



(3) "Department of Environment. Health, and 
Natural Resources" or "Department" means 
the North Carolina Department of Envi- 
ronment. Health, and Natural Resources. 
The term also means the authorized repre- 
sentative of the Department. 

(4) "Permittee" means the person in charge 
who resides in, and owns or rents the Bed 
and Breakfast Inn. 



1457 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



PROPOSED RULES 



(5) "Person" means any individual, firm, asso- 
ciation, organization, partnership, business 
trust, corporation, or company. 

(6) "Potentially hazardous food" means any 
food or ingredient, natural or synthetic in a 
form capable of supporting the growth of 
infectious or toxigenic microorganisms in- 
cluding Clostridium botulinum. This in- 
cludes raw or heat treated foods of animal 
origin, raw seed sprouts, and treated food of 
plant origin. 1 he term does not include 
foods which have a p_H level of 4.6 or below 
or a water activity (A„, ) value of 0.85 or 
less. 

(7) "Sanitarian" means a person authorized to 
represent the Department on the local or 
state level in making inspections pursuant to 
state law and rules. 

Statutory Authority G.S. 130A-248. 

.3002 PERMITS 

(a) No person shall operate a bed and breakfast 
inn within the State of North Carolina who does 
not possess an unrevoked permit from the De- 
partment. 

(b) No permit to operate shall be issued to a 
person until an inspection by the Department 
shows that the bed and breakfast inn complies 
with the rules of this Section. 

(c) A permit issued to one person is not 
transferable to another person. 

(d) Upon transfer of ownership of an existing 
bed and breakfast inn, the Department shall 
complete an inspection. If the establishment 
satisfies all the requirements of the rules, a permit 
shall be issued. If the establishment does not 
satisfy all the requirements of the rules, a permit 
shall not be issued. 1 lowever, if the Department 
determines that the noncompliant items are con- 
struction or equipment problems that do not 
represent an immediate threat to the public 
health, a transitional permit may be issued. The 
transitional permit shall expire 90 days after the 
date of issuance, unless suspended or revoked 
before that date, and shall not be renewed. Upon 
expiration of the transitional permit, the owner 
or operator shall have corrected the 
noncompliant items and obtained a permit, or 
the bed and breakfast inn shall not continue to 
operate. 

(e) The Department may impose conditions 
on the issuance of a permit or transitional permit . 
Conditions may be specified for one or more of 
the following areas: 

(1) The number of seats or persons served. 



(2) The categories of food served. 

(3) Time schedules in completing minor con- 
struction items. 



£51 

(61 

(21 

m 



Modification or maintenance of water 
applies. 



Use of facilities for more than one 
pose. 

Continuation of contractual arrangements 
upon which basis the permit was issued. 

Submission and approval of plans for 
renovation. 

Any other conditions necessary for a bed 
and breakfast inn to remain in compliance 
with this Section. 

(f) A permit is issued by and inspections are 
made by local and state authorized represen- 
tatives of the Department. 

(g) A permit or transitional permit shall be 
immediately revoked in accordance with G.S. 
130A-248(b) for failure of the facility to maintain 
a minimum grade of C. A permit or transitional 
permit may otherwise be suspended or revoked 
in accordance with 130A-23. A new permit to 
operate shall be issued only after the establish- 
ment has been reinspected by the Department 
and found to comply with this Section. This re- 
mspection will be conducted within a reasonable 
length of time, not to exceed 15 days after the 
request is made by the permittee. 

Statutory Authority G.S. 130 A- 248. 

.3003 INSPECTIONS: VISITS: POSTING OF 
GRADE CARDS 

(a) The Department shall make bed and 
breakfast inn inspections at least once every six 
months. 

(b) An inspection for the purpose of establish- 
ing a sanitation grade shall be made within 30 
days from the date the permit is issued. 

(c) Whenever an inspection of a bed and 
breakfast inn is made, the Department shall re- 
move the existing grade card, issue a grade card, 
and post the new grade card in a conspicuous 
place where it may be readily observed by the 
public upon entering the facility. The permittee 
shall be responsible for keeping the grade card 
posted at the location designated by the Depart- 
ment at all times. 

(d) Reinspections for the purpose of raising the 
alphabetical grade shall be conducted after a rea- 
sonable period of time, not to exceed 15 days, 
from the date of the request. 

Statutory Authority G.S. 130A-248. 

.3004 INSPECTION FORMS 



6.79 NORTH CAROLINA REGISTER January 2, 1992 



1458 



PROPOSED RULES 



The grading of bed and breakfast inns shall be 
done on an inspection form prepared and fur- 
nished bv the Department. 

Statutory Authority G.S. 130 A- 248. 

.3005 GRADING 

(a) The grading of bed and breakfast inns shall 
be based on the standards of construction and 
operation set out in Rules .3006 to .3016 of this 
Section. 

(b) The sanitation grading of all bed and 
breakfast inns shall be based on a system of 
scoring wherein establishments receiving a score 
oi at least 90 percent shall be awarded Grade A; 
all those receiving a score of at least 80 percent 
and less than 90 percent shall be awarded Grade 
B: all those receiving a score of at least 70 percent 
and le >s than SO percent shall be awarded a Grade 
C. Permits for bed and breakfast inns receiving 
a score of Ii s than 70 percent shall be lmme- 
diatelv re\'oked. 



Statutory Authority G.S. I30A-24S. 

.3006 FOOD SOURCES AND PROTECTION 

(a) All food shall be clean, wholesome, free 
from adulteration and spoilage, safe for human 
consumption and shall be handled, served, or 
transported in such a manner as to prevent con- 
tamination, adulteration or spoilage. Only Grade 
"A" milk shall be used- 
lb) hoods that are spoiled or otherwise unfit 
for human consumption shall be immediately 
disposed of as garbage. 

(c) Potentially hazardous foods shall be kept 
at or below 45 degree s F (_7 degrees C). except 
when bemg prepared or served. An air temper- 
ature thermometer accurate to plus or minus 3 



degree s F (plus or minus 1 ' 2 degrees C) shall be 
provided in all refngerators. 

id) Thawing of potentially hazardous food shall 
be done in refrigerated umts at a temperature not 
to exceed 45 degrees F (7 degrees C) or under 
cold running water no warmer than 70 degrees F 



(g) Potentially hazardous foods requiring 
cooking shall be cooked to heat all parts of the 
food to a temperature of at least 140 degrees |_ 
(60 degrees C) with no interruptions of the 
cooking process, except as follows: 

( 1) poultry shall be cooked to heat all parts 
to at least 165 degrees F [74 degrees C), 
and 

(2) pork shall be cooked to heat all parts of 
the food to at least 150 degrees F (66 de- 
grees C). and 

(3) potentially hazardous foods that have been 
cooked and then refrigerated shall be re- 
heated rapidly to 165 degrees P (74 de- 
gree ; C] or higher throughout before 
being served or placed in hot food storage. 

fh) Raw eggs or foods containing uncooked 
eggs shall not be served. Pasteurized egg pro- 
ducts mav be substituted for raw eggs. 



(1) A metal stem-tvpe thermometer accurate to 
plus or minus 2 degrees F (plus or minus 1 degree 
C) shall be available to check food temperatures. 

(j I Food once served to a customer shall not 
be served again and not left for the next cus- 
tomer. Packaged food, other than potentially 
hazardous food, that is still packaged and is still 
wholesome mav be reserved. 

Ik) Pets shall not be allowed at any time in anv 
room or area m which food is prepared or stored. 
Pets, unless caged and restricted from the imme- 
diate eating area, shall not be allowed in anv 
room or area in which food is served. 



Statutory Authority G.S. I30A-248. 

.3007 FOOD SERVICE PERSONS 

(a) All food service personnel shall wear clean 
outer clothing and shall be clean as to their per- 



son and methods of foodhandling. No employee 
shall use tobacco m any form while engaged in 
the washing of eating and cooking utensils or in 
the preparation, handling, or serving of food. 

(b) Fmplovees shall wash their hands thor- 
oughly m an approved handwashing lavatory, 
before starting work, after each visit to the toilet, 
and as often as mav be necessary to remove soil 



(24 degrees C), or as a part of the cooking proc- and contamination. The kitchen sink shall not 
e_v be used for handwashing. 

(e) Fmplovees preparing food shall have used 
anti-hactenal soap, dips, or hand sanitizers im- 
mediately prior to food preparation or shall use 
clean, plastic disposable glove ; or sanitized 
utensils during food preparation. This require- 
ment is in addition to all handwashing require- 
ments in Rule .3007 of this Section. 

if) Preparation surfaces which come in contact 
with potentially hazardous food shall be sanitized 
as provided in Rule .3 00S of this Section. 



(c) Fmplovees engaged in the preparation of 
food shall wear hairnets, caps, or other hair re- 
straints to prevent the contamination of food or 
food contact surface! Wigs and hair sprav do 
not constitute compliance with this Rule. 

(d) No person who has a communicable or 
infectious disease that can be transmitted bv 
foods, or who is a earner of organisms that cause 
such a disease, or who has a boil, mlected 
wound, or disease with sudden onset and severe 



1459 



6:19 SORTH CAROLISA REGISTER January 2, 1992 



PROPOSED RULES 



symptoms including cough or nasal discharge, 
shall work hi a food service area in any capacity 
in which there is a likelihood of such person 
contaminating food or food-contact surfaces with 
disease-causing organisms or transmitting the ill- 
ness to other persons. If the operator has reason 
to suspect that any person has contracted any 
disease transmissible through food, or has be- 
come a earner of such disease, the operator shall 
notify the local health department immediately. 

.3308 FOOD SERVICE UTENSILS AND 

EQUIPMENT AND THEIR CLEANING 

(a) Multi-use eating and drinking utensils shall 
be washed, rinsed, sanitized and air-dried after 
each usage. Domestic kitchen equipment may 
be used. Domestic kitchen equipment shall in- 
clude a domestic dishwasher and a domestic 
two-compartment sink. However, in lieu of a 
dishwasher and two-compartment sink, a three - 



compartment sink may be used. Saniti/ation 
shall take place in a dishmachine which is con- 
structed, operated, and maintained in accordance 
with National Sanitation Foundation standards 
or equal or shall take place in the sink by 
immersion in one of the following methods: 

( 1 ) for at least one minute in clean hot water 
at_ least 170 degrees F [77 degrees C), or 

(2) at_ least two minutes m a clean, tested sol- 
ution containing: 

(A) at least 50 parts per million of available 
chlorine of at least 75 degrees F (24 de- 
grees C); or 

(B) at least 12.5 parts per million of avail- 
able iodine and having a p_H not higher 
than 5.0 and a temperature of at least 75 
degrees F (24 degrees C); or 

(C) at least 200 parts per million of 
quatemary ammonium products and hav- 
ing a temperature of at least 75 degrees F 



(24 degrees C) provided that the product 
is labeled to show that it is effective in 
water having a hardness value of at least 
equal to that of the water being used. 

(b) All eating, drinking, and food preparation 
utensils shall be air-dried. 

(c) All multi-use utensils except baking sheets 
and similar cooking utensils, not used for table 
service, that are used in the storage, preparation, 
or serving of food shall be cleaned and sanitized 
after each use. Baking sheets and similar cooking 
utensils, not used for table service, which are 
continually subjected to high temperatures do 
not require sanitizing after each use, but shall be 
kept clean and maintained in good repair. 

(d) For utensils and equipment which are either 
too large or impractical to sanitize in the sink or 
dishwashing machine, a spray-on or wipe-on 



sanitizer may be used. When spray-on or 
wipe-on sanitizers are used, the chemical strength 
shall be twice that required for sanitizing multi- 
use eating and drinking utensils. 

(e) Food service equipment shall be easily 
cleanable and kept in good repair. All surfaces 
with which food or drink comes in contact shall 
consist of smooth, not readily corrodible, non- 
toxic material such as stainless steel, phenolic re- 
sin, marble slabs, or tight wood in which there 
are no open cracks or joints that will collect food 
particles and slime, and be readily accessible for 
cleaning. A separate lavatory, including hot and 
cold running water, and combination supply 
faucet or tempered water shall be provided. Soap 
and sanitary towels shall be provided. By Janu- 
ary jj 1997, potentially hazardous foods shall be 
kept in refrigeration units that meet National 
Sanitation Foundation standards or equal. 

(f) All equipment and fixtures shall be kept 
clean. Cooking surfaces of equipment shall be 
cleaned at least once each day. Non-food con- 
tact surfaces of equipment shall be cleaned at 
such intervals as to keep them in a sanitary con- 
dition. 

(g) No polish or substance containing cyanide 
or other poisonous materials shall be used for the 
cleaning or polishing of eating or cooking 
utensils. 

(h) Disposable utensils shall be purchased only 
in sanitary containers, shall be stored there in a 
dry place until iwd and shall be handled in a 
sanitary manner. Disposable articles shall be 
made from non-toxic materials and shall be used 
only once. 

(i] Storage facilities, including residential 
kitchen cabinets, shall be kept clean and free of 
pests. 



L Statutory Authority G.S. 130A-248. 



.3009 LAVATORIES AND BATHROOMS 

(a) At least one bathroom shall be provided for 
every two bedrooms. 

(b) All lavatory and bathing facilities shall in- 
clude hot and cold running water under pressure, 
individual towels and soap. Fixtures shall be 
kept clean and in good repair. Floors and walls 
shall be constructed of smooth, non-absorbent, 
washable materials. 



(c) Floors, walls, and ceilings shall be kept 
clean and in good repair. 

(d) All sewage and other liquid wastes shall be 
disposed of in a public sewer system or, in the 
absence of a public sewer system, by an ap- 
proved, properly operating, sanitary sewage sys- 
tem. 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



1460 



PROPOSED RULES 



Statutory Authority G.S. I30A-248. 

.3010 WATER SI PPLY 

(a) Water supplies shall med the requirements 
in 15A NCAC ISA .1700. 

(b) I he water supply used shall be located, 
constructed, maintained, and operated in accord- 
ance with the Commission lor 1 lealth Services' 
rules governing water supplies. Copies od I5A 
NCAC ISA .170(1 and 1 5 A NCAC ISC may be_ 
obtained from the Division of Environmental 
1 lealth. Department of Fnvironment, I lealth, 
and Natural Resources. P.O. Box 276S7. 
Raleigh, North Carolina 2 7 MI-7687. At least 
once per year, a sample of water shall be col- 
lected by the Department and submitted to the 
Division of I ahoratorv Services or other labora- 
tory certified by the Department to pertorm 
bacteriological examinations. 

(c) Cross-connections with unapproved water 
supplies are prohibited. I lot and cold running 
water under pressure shall be provided to tood 
preparation, utensil and handwashing areas, 
bathrooms and any other areas in which water is 
required lor cleaning m sufficient quantity to 
cam out all water using operations. 

(d) Facilities for the heating of water shall be 



Where ice is made on the premises, the machines 
shall be located in a protected place; long- 
handled scoops shall be provided; and machines, 
equipment, utensils and the room or area in 
u hich the machines are located, shall be kept 
clean. 



(d) Ice storage bins shall not be used for any 
other purpose. 

Statutory Authority G.S. 130A-248. 

.3012 BEDS: LINEN 

(a) Mattresses shall be kept clean and in good 
repair. 

(b) Clean bed linen, in good repair, shall be 
provided for each guest who is provided accom- 
modations and shall be changed between guests. 
Clean linen shall be stored in cabinets or on 
shelves in linen storage areas. Soiled linen shall 



and other pests, 
provided. The capacity o\ the hot water heating shall be kept neat, elea 

facilities shall be based on the number of an j ro dent harborages. I nless 



bathrooms, the capacity of the dishwashing ma- 
chines and other lood service and cleaning needs. 

Statutory Authority G.S. I30A-248. 

.301 1 DRINKING WATER FACILITIES 

(a) facilities for the dispensing of drinking, 
water shall be of approved sanitary design. If 
water cooling equipment is installed, it shall be 
of the t \ pe m which ice does not come in contact 
with water. H drinking fountains are provided, 
thev shall he of the approved angle- jet type. 
Common clippers or common drinking glasses 
or cups shall not be used. 

(b) For room service, glasses, pitchers, or 
multi-use tubs, or single-service cups and single- 
sen ice tubs, may be used, provided all multi-use 
utensils are washed thoroughly . subjected to ap- 
proved bactericidal treatment, and stored and 
handled in a manner to prevent contamination, 
lor the washing, bactericidal treatment, and 
storage ot multi-use utensils, lacilities meeting the 
requirements of Rule 3008 of this Section shal 



be handled and stored separately from clean 
linen. 

Statutory Authority G.S. 130A-24S. 

.3013 VERMIN CONTROL: PREMISES 

(a) All bed and breakfast inns shall be kept free 
of roaches, flies, and other pests. The premises 

rained and free of litter 
air conditioning 



is provided, all windows opening to the outside 
shall be screened to prevent the entrance of Hies 
and other pests, and doors opening to the outside 
shall be self-closing. 

(h) ( )nlv pesticides that have been registered 
shall be used and only for the specific use for 
which they have been approved by the Fnviron- 
mental Protection Agency. Such pesticides shall 
be used as directed on the label and shall be 
handled and stored to avoid health hazards and 
not be accessible to young children. 



Statutory Authority G.S. 130A-248. 

.3014 STORAGE: MISCELLANEOUS 

(a) Storage rooms or spaces shall be kept clean. 

(b) I lousehold cleaning agents such as 
bleaches, detergents, and polishes shall be stored 



out o[ the reach of children. 

Medications under the control 



(el 



ft) 



e inn 



keeping staff shall be stored m a separate cabinet, 
closet, or box not accessible to children. 



be provided. Single-service cups, tubs, or similar 
items shall be stored and handled in a manner \o_ 
prevent contamination. 

(c) Ice shall be manufactured from an approved 
water supply and shall be stored and handled m 
such a manner as to prevent contamination. 



Statutory Authority G.S. 130A-248. 

.3015 EEOORS: WALLS: CEILINGS: 
LIGHTING: VENTILATION 

Floors, walls, ceilings, and windows shal 



[a) 
be kept clean and in good repair. Floors and 



1461 



6: 1 9 NOR TH CAROLINA REGIS TER January 2, 1 992 



PROPOSED RULES 



walls in rooms in which food is stored, prepared, 
handled, or served, or in which utensils are 
washed, and in toilet rooms, shall be non- 



absorbent and easily cleanable. 

(b) Furniture, fixtures, draperies, lighting fix- 
tures, ventilation equipment and other accesso- 
ries shall be kept clean and in good repair. 

Statutory Authority G.S. J30A-24S. 

.3016 DISPOSAL OF GARBAGE AND TRASH 

(a) All putrescible waste shall be placed in 
garbage cans which are provided with approved 
liners such as plastic garbage bags. Rubbish, lit- 
ter and other items not used in the operation of 
the establishment shall not be permitted to ac- 
cumulate on the premises. 

(b) Garbage shall be collected and stored in 
standard water-tight garbage cans or other ap- 
proved containers or methods and provided with 
tight-fitting lids. Lids shall be kept in place, ex- 
cept for cans inside the kitchen which are being 
used frequently during normal operations. The 
contents of these cans shall be removed fre- 
quently and the cans shall be washed. 

Statutory Authority G.S. J30A-24S. 

.3017 SEVERABILITY 

If anv provision of this Section, or the applica- 
tion thereof to any person or circumstance, is 
held invalid, the remainder of these Rules, or the 
application of such provision to other persons 
or circumstances, shall not be affected thereby. 

Statutory Authority G.S. 130A-248. 

.3018 APPEALS PROCEDLRE 

Appeals concerning the interpretation and 
enforcement of the rules in this Section shall be 
made in accordance with G.S. 150B and 10 
NCAC IB. 

Statutory Authority G.S. 130A-248. 

SUBCHAPTER 18C - WATER SUPPLIES 

SECTION .1500 - WATER QUALITY 
STANDARDS 

.1508 INORGANIC CHEMICAL SAMPLING 
AND ANALYSIS 

(a) Analyser , fof the purport »f determining 

compliance with Rule .1510, .1511, .1512. a«4 

.1507(a) ©f this Section a** required as follows: 

(44 Analyses fof all community water systems 

utilising surface water sourc e s shall be 

completed within ©fte yeaf following the 

effective date »f the National Primary 



& 



Drinking Wator Regulations f4Q C.F.R. 
Ml. 23, efe feae 34r mi± These ana- 
lyses shall be repeated at y e arly intervals. 
Analyoos fo* aU community wator syst e ms 
utilising e«ly ground wat e r sources shall 
be completed within tw-» years following 
the e ffective date »f the National Primary 
Drinking Water Regulations (4Q C.F.R. 
111.23, effrfeReg4r 1977). Those analyoos 
shall be ropeatod at three yea* intervals. 
ttof non community wator systems, 



wheth e r supplied by surfac e ef ground 
sources, analys e s fof nitrate shall be com 
plotod by rfoly 4-? 1980. Thoso analyoos 
shall be ropoatod at intervals determined 
by the Department. 
£4} The Department has the authonty to de- 
termine compliance &f initiate e nforce 
mont action based upon analytical results 
affo other information compiled by its 
authorized representatives and agencies. 
fb} If the result e£ a» analysis made pursuant 
to (a} ef (£} ef this Rule indicates that the level 
ef any contaminant listed fo .1510 ef this Section 
exceeds the maximum contaminant level, the 
supplier ef water shall notify the Division within 
sovon days and initiate three additional analyses 
at the samo sampling point within ©fie month. 
(e) Whon the average ef fow analyses made 

r^iTTOrinT i\j \ t ? j i ti trnrr i\u iv , i iiuiiu \.^i i \j h i\j l'iii i iv 

number ef significant figures as the maximum 
contaminant level fof the substance m question, 
exceeds the maximum contaminant level, the 
supplier ef wator shall notify the Department 
pursuant te .1525 ef this Section and- give notice 
te the public pursuant te- .1523 ef this Section. 
Monitoring after public notification shall be at a 
frequency designated by the Secretary a«4 shall 
continue until the maximum contaminant level 
has Ret boon exceeded fo twe successive samples 
ef until a monitoring schedule as a condition to 
a variance, exemption ef enforcement action 
shall b e com e effective. 

(4) The provisions ef fej af*4 (©) ef this Rul e 
notwithstanding, compliance with the maximum 
contaminant level fof nitrat e shall be determined 
eft the basis ef the moan ef twe analyses. W hen 
a level exceeding the maximum contaminant 
level fof nitrat e is found, a second analysis shall 
be initiated within 24 hours, aed if the mean ef 
the twe- analyses exceeds the maximum contain 
in ant level, the supplier ef water shall report his 
findings to> the Department pursuant to . 1525 ef 
this Section and shall notify the public pursuant 
to .1523 ef this Section. 

(e) Analyses conducted to determine compli 
aftee with Rules rtoT&r 444-k: Te44r and- 4eCW 
el this Section shall be made m accordance with 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



1462 



PROPOSED RULES 



method -, adopted by the United Stater . Environ 
mental Protection Aaenev afi4 codified as 40 
C.F.R. 1 11.23(f)(1) through f40) aaa 40 C.F.R. 
M3. ' 1(h)(5), f6)r a»4 f&) which afe hereby 
adopted by reference as amended through May 
2t 19S6. A fat el these m e thods is availabl e frem 
the Public Water Supply Section, Division el 
Environmental Health, PtOt -Be* 29536, Raleigh, 
;\fofth Carolina 27626 0536. 

(I) Eft addition te complying with Paragraphs 
fa) through fe) el this Rul e systems monitoring 
fof fluorid e must comply with the requirements 
c4 this Paragraph. 

(4) W-hege the system draws water from e»e 
source, the system shall take ene sample 
at the on try point te the distribution sy-s- 
tem. Where the system draws water from 
more than efte source, the system must 
sample each sourc e at the entry points , to 
the distribution system. If the system 
draws water from more than e»e sourc e 
a«4 sources »fe combined before distnb 
ution the system must sample at an- entry 
point te the distribution syst e m during 
periods representativ e el the maximum 
fluorid e levels occurring under normal 
operating conditions. 
(-2) 44te Division may alter the frequencies tef 
fluoride monitoring r e quir e d hy- fa) el this 
Rule considering the following factors: 
fA) Report e d concentrations from previ 

ously r e quir e d monitoring; 
f44) 44ie degr ee el variation » report e d 

concentrations; and 
fG) Other factors which may- affect fluoride 
concentrations such as changes fo the wa- 
tef syst e m's configuration, operating pro 
cedures, source el water, a»4 changes » 
stream flows. 
f4) Monitoring may he d e creas e d from the 
frequencies fft fa) el this Rule tf the Divi 
siee- detennines that the water system is 
unlikely te exceed the maximum contain 
inution level. Such determination shall he 
made hy- the Division a»4 the owner »e- 
tilied ift writing after the sampling results 
from eaeh source have been received affo 



evaluated. Evaluation el those results aad 
the factors » (f)(2) el this Rul e w44l pro 
vt4e the basis tef the determination. A 
copy shall he provided te the administra 
tefr 4ft fte ease shall monitoring he fe- 
duoed te less than e«e sample every 4-0 
years. Fef systems monitoring onco e very 
40 years, the Division shall review moni 
toring r e sults te determine whether more 
frequent monitoring is necessary. 
(4) Analyses fof fluoride under this Rule shall 
only he used tef determining compliance 
if conducted hy- laboratories that within 
the last 44 months hav e analyzed pep- 
formanc e evaluation samples te within •+>• 
ef - 4-0 percent el the reference valuo at 
fluorid e concentrations from 44} mg 1 te 
404>mg-h- 
fe) Compliance with the maximum contam 
inant level shall he determined based e» 
each sampling point. II any sampling 
point is determined te he ewt el compli 
anc e , the water system is doomed te be 
eet el compliance. 
fg) Ae adjacent water system shall conform te 
the following sampling schedule rather than the 
schedul e set forth m Paragraph fa) el this Rul e . 
A V i ator supplier shall submit samples every three 
years from e ach section el the water system sup 
plied from a separat e source. 

The provisions of 40 C.E.R. 141.23 are hereby 
adopted by reference in accordance with G.S. 
150B-21.6 and shall include subsequent amend- 
ments and editions. A copy may be obtained 
from the Public Water Supply Section, P.O Box 
2^536. Raleigh, NC 27626-0536. In addition, 
two or more water systems that are adjacent and 
are owned or operated by the same supplier of 
water and that together serve 15 or more service 
connections or 25 or more persons shall conform 
to the following sampling schedule. A water 
supplier shall submit samples every three years 
from each section of the water system supplied 
from a separate source. 

Authority G.S. 130A-3I5; P.L. 93-523; 40 C.F.R. 
141. 



.1510 MAXIMUM CONTAMINANT LEVELS FOR INORGANIC CHEMICALS 

fa)- 44ie maximum contaminant level tef nitrate is applicable te both community water systems aft4 
non community water systems except as provided hy- in Paragraph fd-fr 44re levels fof the other inor 
game chemicals apply Bf4y te community water systems. Compliance with maximum contaminant 
levels fof inorganic ch e micals is calculated pursuant te Rule . 15US el thus Section. 

fb) 44te following afe the maximum contaminant levels fof inorganic chemicals other than fluoride: 
Contaminant L e v e l, milligrams 

Arsenic - 04)5 

Barium - - It 



1463 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



PROPOSED RULES 



Cadmium — -- - - — mW 

Chromium — — - — &&§ 

I n-i rl fl f)s 

Mercury -- — - &SQ2 

Nitrat e (as ?4>- - - - - 4-Qr 

Solonium - €MM- 

SiJ¥W - - - - Q&S 

(e) ¥he maximum contaminant level fef fluorido is 4rf> mg/1. 

(4) A4 the discretion ef the Department, nitrate lev e ls net te oxcood 34 mg/1 may be allowed i» a 
non community water system if the supplier ef water demonstrates to the satisfaction ef the Depart 
mont that: 

(44 Such water wiH aet he availablo te children und e r e months ef age- aftd 

(3) Thoro wtH- he continuous posting ef the feet that nitrat e lovols oxcood 444 mg 1 aftd the potential 

health effects ef exposure; a»d 
(3) Local a«4 state public health authorities w4H- he notified annually ef nitrat e levels that oxcood 

444 mg/1; aftd 
(4} jve adverse health effects shall result. 

(a) The provisions of 40 C.F.R. 141.1 1 are hereby adopted by reference in accordance with G.S. 
150B-21.6 and shall include subsequent amendments and editions. A copy may be obtained from the 
Public Water Supply Section. P.O. Box 29536, Ralei.gh, NC 27626-0526. 

(b) The provisions of 40 C.F.R. 141.62 are hereby adopted by reference in accordance with G.S. 
150B-21.6 and shall include subsequent amendments and editions. A copy may be obtained from the 
Public Water Supply Section. P.O. Box 29536, Ralei.gh, NC 27626-0526. 

Authority G.S. 130A-315; P.L. 93-523; 40 C.F.R. 141. 

.1515 ORGANIC CHEMICALS OTHER THAN a»d ethe* information compiled by- theif 

TTHM, SAMPLING AND ANALYSIS sanctioned representatives aftd aaencios. 

(a) A» analysis ef substances fof the purpose (b) If the result of an analysis made pursuant 

ef determining compliance w-hb 44A NCAC 4*G t o (a) of this Rule indicates that the level of any 

.1517(1) aftd (34 shall he made as follows: The contaminant listed in 15A NC AC 18C .1517 (44 

provisions of 40 C.F.R. 141.24 are hereby ^4 ^ exceeds the maximum contaminant level, 

adopted by reference m accordance with GJv tne supplier of water shall report to the Depart- 

150B-21.6 and shall include subsequent amend- ment Wlt hin se*e» davs 48 hours and initiate 

ments and editions; however, 40 C.F.R. three additional analyses withm one month. 

141.24(b) is not adopted. A corjy may_ be ob; ^ Whea the averag e ef few analyses ma4e 

tained from the Public Water Supply Section, pursuant te- 44 ef 44s 4^4% rounded te the safne 

P.O. Box 29536, Raleigh. NC 27626-0536. number ef significant figuros a* the maximum 

(-h> Eor- ah community water systems utilizing contaminant level fef the substance m qu e stion, 

surface water sources, analyses shah he exceeds the maximum contaminant leveh the 

compl e t e d within ese yeaf following the supplier ef water shah report te the Department 

effective date ef the National Primary a»d give notico te the public pursuant te .1523 

Drinldng Water Regulations (40 C.F.R. aftd .1525 ef this Section. Monitoring aftef 

141.24, effr June 34r 1977). Samples ana- public notification shall he at a frequency desig 

lyzod shall he collected during the p e riod nated hy the Secretary a«4 shall continuo until 

ef the yeaf designated hy the Secretary as the maximum contaminant level has ftet boon 

the period when contamination hy pesti exceeded i» twe- succosoivo samples ef until a 

cid e s is most likely te occur. These ana monitoring schedule as a condition te a variance, 

lysos shall he r e p e ated at intervals e x e mption ef enforcem e nt action shall b e come 

specified hy the Secretary b«t » »e event effective. 

less frequently than at thre e yeaf intervals. (4) jVnalysos made te d e termin e compliance 
(3) be* community water systems utilizing with Rul e .1517(1) aftd (3} ef this Section shall 
only ground water sources, analys e s shall he mad e i» accordanc e with m e thods adopt e d by- 
be completed by those systems specified the United States Environmental Protection 
by the Secretary. Agency and- codified as 444 C.F.R. 1 11.2 1(e) a«4 
(3) The Department has the authority te de- fffr which afe hereby incorporated by reference 
t e rmin e compliance ef initiat e e nforc e including subsequent amendments aftd e ditions, 
ment action based upon analytical results A hst ef thes e methods is availabl e from the 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



1464 



PROPOSED RULES 



Public Wat e r Supply Suction. Division ef Envi 
ronmental Health. R44r 8e* 29536, Raleigh, 
North Carolina 27626 0536. There is fte- eest fef 
this material. 

(e) Analvtiis mad e te determine complianc e 
with 44A NCAC 4*G .1518(a) shaU be ee«- 
ducted as followo: 

(4) Ground water systems shall sampl e at 
points ei entry te the distribution system 
representative ef e ach weU after a»y- ap- 
plication ef treatment. Ground water 
syst e ms must sampl e every threo months 

^^^i ^^^^^i ^^^^^^ ^^^^ ^^^^^t^ ^^^^^*^^ l^^^^^ii t ^ I L^^#4 
^^^t ^^^^^7 ^^^t^t ^^^t ^^^r^^^r ^^r^r^^^T ^^^^^^^t wj lhw 

distribution system e xc e pt as provided m 
Paragraph (o)(6)(i) ef this Rule; sampling 
■. hall he conducted at- the same location 
ef a more representativ e location each 
quarter. Surface water systems shall 
sample at- points m the distribution system 
located beyond a»y point ef treatment 
application. Surface water systems must 
sampl e each source overs' three months 
except as provided i» Paragraph (e)(6)(h) 
ef this R.ulo. Sampling shall he conducted 
at- the sam e location ef a more represen 
tative location e ach quart e r fef both sef- 
faee ae4 ground water systems. Jf a 
ground ef surface system draws water 
from more than eee source and sourc e s 
a*e combined before distribution, the sys- 
tem shall sample at a» entry point te the 
distribution syst e m during periods ef 
normal operating conditions. 

(4-> A4I community water systems aed non 
transient, non community water systems 
serving mor e than 10,000 peopl e shall an- 
alyze samples beginning fie krtet than 
June 4-r 1988. AH- community water sys- 
tems a«4 non transient, non community 
water systems serving from 3,300 te- 
10,000 people shall analyz e samples be- 
ginning ho later than the quarter which 
begins January -h 1989. A4J other com 
munity a»d non transient, non 
community water syst e ms shall analyze 
samples beginning »e latef than the quar 
tef which begins January -h 1991. 

(4+ 44*e Department ef the United Stat e s 
Pnvironmental Protection Ag e ncy may 
require confirmation samples fef positive 
ef n e gativ e r e sults. Jf a confirmation 
sample is required, thee, the sample result 
shall he averaged with- the ftfst sampling 
result a«4 the average ese4 fef the com 
pliance d e t e rmination i» accordanc e with 
(e)(7) ef this Rule. 44ie Department may 
del e t e results ef obvious sampling errors 
from this calculation. 



(4) Analysis fef vinyl chlorido is required 
only fef ground water systems that- have 
detected eee ef more ef the following 
two carbon organic compounds: 

Trichloroothylen e , T e trachloroothyiono, 
1,2 dichloroothano, 1,1,1 trichJoroethano, 
cis 1,2 dichloroethyleno, 
trans 1,2 dichloroethylono, ef 

1,1 dichloroethyleno. The analysis fef 
vinyl chlorido is required at- each distrib 

^^^^^^^^ ^^i ■ \ T 1 t V~\ T~\i t 1 Tl t ' I t 1 \ I \ 1 * f 1 ^^^^^^ ^^Jl T t ■> . ^ r . \ 

uiiv.in i.' i l 1 1 l i j i ' \~ j 1 1 1 1 u i m rnvn ctho ut ttt^^t^ 

ef the two carbon organic compounds 
were found. Jf the fifst analysis does aet 
detect vinyl chloride, the Department feay 
r e duc e the frequency ef vinyl chlorido 
monitoring te onoo over/ throe y e ars fef 
that sample location ef other sample le- 
cations which afe moro r e pres e ntative ef 
the same source. Surface water systems 
may he required te analyze fef vinyl 
chlorido at the discretion ef the Depart 
ment. 

4he Department ef individual public 
water systems may composite ep te five 
samples fef efte ef more public wat e r 
systems. Compositing ef samples is te 



e* 



he done ift tfie laboratory by- the proce 
dur e s list e d ie- this Subparagraph. Sam 



eles shall he analyzed within +4 days ef 
collection. Jf aey organic contaminant 
k*t*4 m 45A NCAC 44C .1518(a) is de- 
t e ct e d is the original composite sampl e , a 

i ' ' I ll"? 1 ^'- 1 I '"■ 1 &Q Q 3 qJ3 i-^-ii ignn fl-i-it r->~t r% . ] , t i i t-. + ti . i 

composite sample shall he reanalyzed ie- 
dividually within 44 days from sampling. 
The sample fef reanalysis cannot he the 
original sample bet ea» he a duplicate 
sample Jf duplicates ef the original sam 
pies afe net available, eew- samples shall 
he tak e n from e ach sourc e used i» the ef- 
iginal composite afid analyzed fef volatile 
organic chemicals. Reanalysis shall he 
accomplished within 44 days ef the see- 
ee4 sample. Te composite samples, the 
following procedure shall he applied: 
(+i 44- composite samples prior te GG 
analysis: 

(■A4 A44 e ff4 ef equal larger amount ', 
ef e ach sample fee te 5 samples afe af- 
low e d) te a 45- m4 glass syringe. Special 
precautions shall be made te maintain 
zefe headspace i» the s>ring e . 
fB4 The samples shall he cooled at PC 
during this step te minimiz e 
volatilization losses. 
fC4 A4i* well aed draw - eet a 5 ml aliquot 
fef analysis. 



1465 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



PROPOSED RULES 



ribed m the 



/ I I \ I .nllnni .^ ■ i t-i-\ r-. I | > ir 

\ \.J f I U11U Tl rTTTTTTTTTC IT 

ami dot' i orption steps ees 
method. 

\ ' 1 V f TT lt?y*! 1 1 lit I F f IT P >lLlx 111 TX09 LtlT? LI !)t?(_l lOl 

compositing, a proportionately smaller 
syringe may be used. 
(4i} ¥e composite samples prior te GC/MS 

analysis: 

(A} Inject 5 ml ef e qual larger amounts 
ef each sample fap t& § samples afe ab 
lowed) iata a 25 ml purging device as- 
ms the sample introduction technique 
described m the method. 

(-&} The total volume ef the sample ift the 
purging device shall be 34 mb 

(G) Purg e ami desorb as described i» the 
m e thod. 
(4+ Tbe monitoring frequency fof sampling 

specified » Paragraph (o)( 1 ) ef th+s Rule, 

shall be as follows: 
fi} baf ground water systems: 

(A) When volatile organic chemicals afe 
Hot detected m the fifst sample (-at a»y 
subsequent samples tbat may be taken) 
a«4 the system *s fret vulnerable as ee- 
fined » Paragraph (e)(6)(iv) ef this 
Rule, monitoring may be reduced te 
eae sample ami shall be repeated every 
five years. 

(-&+ When volatile organic chemicals ate 
m>t detected » the fifst sample fef aav- 
subsequent sample tbat may be taken) 
ami the system is vulnerable as defined 
m Paragraph (o)(6)(iv) ef this R.ule. 
monitoring ef eae sample must be re- 
peated every 3 years fet systems with 
more than §90 connections, ami moni 
toring ef eae sample must be repeated 
e very 4 years fet systems wbb ebb con 
nections ef lessr 

fG} If volatile organic chemicals afe ee- 
tected ia tbe fifst sample fef a»y subse 
quent sample tbat may be taken), 
regardless ef vulnerability, monitoring 
shall be repeated even e months, as fe- 
quired under Paragraph (e)(1) ef this 
Rale- 
fif) baf surface water systems: 

fA) Wh e n volatile organic chemicals afe 

tt | J t ji li.T. -t. t. 1 1 t-i till tirft i - ,1 ■-! «- ,-i I- Jl I 1 l , i-t . . j-1 1 

rTTTT BCT LVTVTI 111 I 1 IVJ 111 O I ? ^ II 1 I 1 1 CTTITTTTTTTT 

sampling fef aay other subsequent 
sample tbat may be taken) ami tbe sys- 
tem is m*t vuln e rable as defined ia Par 
a graph (e)(6)(iv), monitoring is only 
required when tbe Department deems 
ft necessary. 
f&) When volatile organic chemicals afe 
fret detected m the t+fst yeaf ef quarterly 



sampling fef afty- other subsequent 
sample that may be taken) aae tbe sys- 
tem is vulnerable as defined in- Para 
graph ( e )(6)(iv) ef this Rule, 
monitoring shall be repeated every 3- 

i - ft ■"■ «- r- T 1-1T- l- 1 .'I't I Iff! L- -\\ ■ < t t-l r-r-k . A «-.-! t ll r, l-l *V I II 1 

T m_TTJ rT7T >■ ( -J IL1 1 1 J Tl I 1 1 1 1 1 IK } 1 VJ TTTTTTT rTTTT 

connections aae monitoring shall be 
repeated every 4 years fe* systems with 
#bb conn e ctions ef less? 
(€) When volatile organic chemicals ate 
dotoctod » tbe fwst yeaf ef quarterly 
sampling fef a»y othor subsequent 
sample tbat may be tak e n), regardless 
ef vulnerability, monitoring shall be re- 
peated every e months as required aa- 
eef Paragraph (e)(1) ef tbis Rule. 
(at) Tbe Department faay reduce tbe ffe- 
quency ef monitoring te onc e pef year fef 
a groundwater system ef surfac e water 
system detecting volatile organic chemi 
eals at levels consistently less than the 
maximum contaminant level fef three 
consecutive years. 
ffv-) Vulnerability ef each public water sys- 
tefft shall be determin e d by- tbe Depart 
m e nt based upon a» ass e ssment ef 
previous monitoring r e sults, tbe numb e r 
ef persons served by public water system. 
proximity ef a smaller system te a larger 
system, proximity te commercial ef ia- 
dustrial eser disposal, ef storage ef volatile 
synthetic organic chemicals, ami pfe- 
t e ction ef tbe water source. 
(*■)• A system is deemed te be vulnerable fef 
a period ef £ years after aay positive 
measurement ef eae ef more contain 
inants listed i» either 44A NCAC -bSG 
.1516(d) ami (4rt ef .1518(a) exc e pt fef 
trihalomethanes aae other demonstrated 
disinfection by products. 
f?) Complianc e wath -bSA NCAC UG 
.1518(a) shall be determined based ea the 
results ef running annual average ef quar 
terly sampling fof each sampling location. 
if eae location's averag e is gr e at e r than 
the maximum contaminant level, then the 
system shall be deemed te be eat ef 
compliance, if a public water system has 
a distribution system separable from oth e r 
parts ef the distribution system with m> 
interconnections, only that part ef the 
system that exceeds afty maximum con 
taminant level as sp e cifi e d i» 44A NCAC 
-1-&G .1518(a) w4b be deemed eat ef com 
pliance. a^be Department may reduce tbe 
public notice requirement te tbat portion 
ef tbe syst e m which is eat ef complianc e . 
if a»y eae sample results would cause the 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



1466 



PROPOSED RULES 



annual average to be exceeded, then the 
system shall be doomed to be e«t ef 
complianc e immodiatoly. ftof syst e ms 
that only take e»e sample pef location 
because , fie volatile organic chemicals 
wore detected, compliance shall be based 
&ft toat ese sample. 
(&) Analyses made to determine compliance 
with this Paragraph shall be mad e » ac- 
cordanc e with methods adopt e d by- the 
I nit e d Stat e s bnvironmental Protection 
Agency aftd- codified a* 44 G.F R. 
1 11.2 l"(g)(10) which afe hereby adopted 
by- reference ift accordance w4th G.S. 
150B M(c). A list- ef these methods is 
available from toe Public Wat e r Supply 
Section. 
(4) 44*e Departm e nt f»ay accept monitoring 
data collected afief January 4r 1983, tof 
purposes ef compliance, if the data is 
consistent with the other requirements » 
fe} ef this Rule. 44*e Department may 
e*e that data to represent the initial mon 
it o ring if toe system is determined by the 
Department fit* to be vulnerable under 
toe requirements ef this Rule, to addi 
tion. toe results ef toe I "nited States Eft- 
vironmental Protection Agency's Ground 
Water Supply Survey fftay be used » a 
similar manner tof systems supplied by- a 
singl e well. 
(44} 44*e Department f»ay incr e ase required 
monitoring where necessary to detoct vaf- 
iations within toe system. 
(f) 44+e D e partment swy- determine complianc e 
ef initiate enforcement action based upon ana 
lytical results tm4 other information compiled by 
toe Department's sanctioned representatives aft4 



Authority G.S. 130A-3I1 through I3QA-327; P.L. 
03-523; 40 C.F.R. 141. 

.1516 SPECIAL MONITORING FOR 
INORGANIC AND ORGANIC 
CHEMICALS 

(a} All community a»4 non transient, non 
community water systems shall begin monitoring 
tef the contaminants list e d t» Paragraph (4} ift 
th+s Rul e as follows: 

(44 A system serving more than 10.000 pef- 
sons shall begin monitoring ftft later than 
:tofte 4^4448^ 
(3) A system serving item ±m to 10.000 
persons shall begin monitorina ft* later 
than the quarter beidnninL! January 4-7 



(4} A system coning lees tha» 3,300 shall be- 
gin- monitoring »e later than the quarter 
beginning January 4-? 1991. 
fb4 Surface water systems shall sample ift the 
distribution system representative ef each water 
source ef at entry points to toe distribution sys- 
toift aftef a«y application ef treatment; toe mini 
mum number ef samples is efte yeaf ef quarterly 
samples pef water source. Ground water systems 
shall sample at points ef entry to toe distribution 
system representative ef e ach well after afty- ap- 
plication ef treatment; the minimum number ef 
samples is efte sampl e pef entry point to toe dis- 
tnbution system. 

fe) 44** Department may require confirmation 
samples fef positive ef n e gativ e results. 

(44 Community water systems a«4 non 
transient, non community water systems shall 
monitor tof the following contaminants except 
as provided ift Paragraph fe} ef this R.ule: 

(44 Chloroform 

(4} Bromodichloromothu.no 

(44 Chlorodibromomethane 

(4} Rromoform 

(4} trans 1.2 Dichloroethyl e n e 

(4} Chloroben/.ene 

f?} m DichlorobenKono 

(4} Dichloromethane 

(4} cis 1.2 Dichloroethylene 

(44} o Dichloroben/eno 

(44} Dibromomothano 

(44)- 1,1 Dichloropropeno 

(444 Tetrachloroethyleno 

(444 Toluene 

(44} p Xylene 

(44} o Xylene 

(44} m Xylene 

(44} 1,1 Dichloroethan e 

(44} 1,2 Dichloropropan e 

(44} 1,1,2.2 fetrachloroethan e 

(4+4 I : thylbeni7one 

(44} 1,3 Dichloropropane 

(434 Styreno 

(44} Chlorom e than e 

(44} Rromomethane 

(46} 1,2.3 Trichloropropane 

(4?} 1,1,1,2 Tetrachloroethane 

(48} Chloroethane 

(40} 1,1.2 Tnchloroothane 



o Chlorotoluene 

p Chlorotolu e n e 

Bromob e n/. e n e 

1.3 Dichloropropeno 

[-thyleno dibromid e (I IDB) 

1.2 Dibromo 3 C'hloropropano (DBCP) 

Communitv water svst e ms a»4 non 



146; 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



PROPOSED RULES 



monitor fef EDB er DBCP ef4y if the Depart 
m e nt determines 4*ey afe vulnerable te- contam 
ination by oithor ef both ef tbese substances. 
Pef 4» purpose ef 44s Paragraph, a vulnerable 
system means ft system which is pot e ntially con 
taminatod fey- EDB »«4 DBCP, including surface 
water systems where these twe compounds afe 
applied, manufactured, stored, disposed ©£7 ef 
shipped upstream, ao4 ground water systems m 
areas where 4*e compounds afe applied, manu 
facturod, stored, disposed efr ef shipped i» 4*e 
ground w r ator recharge basin, ef ground water 
systems 4*ftt- afe i» proximity te underground 
storag e tanks Aftt- contain leaded gasoline. 

4} Analysis under 44s Rule shall be made i» 
accordanc e with methods adopted by 4*e United 
States Environmental Protection Agcnev af»4 
codified as •W C.F.R. I 1 1 .10(g) whk& em hereby 
incorporated by reference including subsequent 
amendm e nts aft4 editions. A 4st- ef these meth 
e4s is available from 4k* Public Water Supply 
Section, Division ef Environmental Health. P.O. 
Be* 29536, Raleigh, North Carolina 
27626 0536. There is h» test- fef 44s material. 

fg} Public water systems may «se monitoring 
date collected any- tim e aft e r January 4-r 19S3. 
provided 4%e monitoring program was consistent 
with 4*e requirements ef 44s Rule. f» addition 
4k» results ef tbe U.S. Environmental Protection 
Agency's Ground Water Supply Survey may be 
used fef systems supplied by a single well. 

44 44>e Department H*ay require monitoring 
fef 4fc» following compounds: 
f+4 1,2,1 Trimethylhorb'.cno 
(4} 1 ,2,4 Trichlorohon/ene 
(44 1 ,2,3 Trichloroben/.eno 



(4} n Propylbonj'.ono 
(-14 n Butvlbonzeno 
(4) Naphthalene 
(9) I Iexachlorobutadieno 
£8) 1,3,5 Trim e thylbenaon e 
(4+ p Isopropyltolueno 
(44} Isopropylbonaono 
(444 Tert butylbenaono 
(44} Sec butylbeniieno 
(44} Fluorotrichloromethane 
(44} Dichlorodifluoromethan e 
(44} Bromochloromethano 
(+} A4 community af>4 non transient, non 
community wator systems shall repeat 4w» moni 
toring ne less frequently than every five years 
from 4»e dates specified m Paragraph fa} ef 44s 
R+4er 

(}} T4h» Department ef a water supplier may 
composite t±p te- f+ve samples when monitoring 
fef substances » (4} a«4 4*} ef 44s Rule. 

(a) The provisions of 40 C.F.R. 141.40 are 
hereby adopted by reference in accordance with 
G.S. 150B-21.6 and shall include subsequent 
amendments and editions, except that 40 C'.l-.R. 
141.4()(n)( 10) is not adopted. A copy may be 
obtained from the Public Water Supply Section, 
P.O. Box 29536, Raleigh, NC 27626-0526. 

(b) To comply with the monitoring require- 
ments of thus Rule a community water system 
or non-transient, non-community water system 
serving fewer than 150 service connections shall 
take a single water sample to be analyzed for in- 
organic and organic chemicals. 



Authority G.S. I30A-315; PI. 
141. 



93-523; 40 C.F.R. 



.1517 MAXIMUM CONTAMINANT LEVELS FOR ORGANIC CHEMICALS 

444e following are 4*» maximum contaminant levels fef organic chemicals. 4+4e maximum contam 
inant levels fef organic chemicals m (4} ami (4} ef 44s Rule apply to a4 community water systems. 
Compliance with 4h» maximum contaminant levels m (4} a«4 (4} is calculated pursuant te 44A NCAC 
f-SG .1515. T4te maximum contaminant level fef total trihalomethan e s m (4} ef 44s Rule applies te 
aff community wator systems a»4 non transient, non community water systems which a44 a 
disinfectant (oxidant) te 4*e water tet a«y pftrt ef 4» drinking wat e r treatment process. Compliance 
with 4*e maximum contaminant level fef total trihalomethanes 4> calculated pursuant te 4-4A NCAC 
44€ 4444 ami 44A NCAC 44G ^4444* 



W 



Chlorinated hydrocarbons: 
Endrin ( l,2.3,'l,10, 10 hexachloro 
6,7, epoxy 1,1, ■ 1a.5,6,7.S,Sa octa 
hvdro 1 , ' 1 endo, endo 5.8 - dimethano 



naphthalene). 

Lindane ( 1.2. 3. 1,5, 6 hexachloro 
cyclohexano, gamma isomer). 
Methoxychlor (1,1,1 Trichloro 2.2 until 
- b+s (p methoxvphenvl) ethane). 
Toxaphene [C( 10)1 1( 10)C 1(8) Technical 



Lovol, milligrams 

t*>. *it* 1 1 1 1 ^r 

0.0002 



4444 

44- 

4404 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



1468 



PROPOSED RULES 



chlorinated camphono, 67 69 percent 
chlorine]. 
(3) Chlorophonoxys: 

2.1.D, (2,1 Dichlorophenoxvac e tic acid). 
2. 1.5 IP &h-e* (2, |,5 Trich'loro 



Mv 

Q Q\ 



& 



Q 1Q 



phenox> propionic acid). 

Total tnhalomothanes fthe sw» evf the 

conc e ntrations &f bromodichloromuthano, 

dihromochloromethano, tribromomethano 

(bromofonn) a&4 tnchloromothano 

(chloroform)]. 
The provisions of 40 C.F.R. 12 are hereby adopted by reference in accordance with G.S. 15QB-21.6 
and shall include subsequent amendments and editions. However, the maximum contaminant level for 
total trihalomethanes shall apply to all community water systems and non-transient, non-communitv 
water systems regardless of population w hich add a disinfectant (oxidant) to the water in any part of 
the drinking water treatment process. A copy may be obtained from the Public Water Supply Section, 
P.O. Box 29536. Raleigh, N'C 27626-0536. 



Authority G.S. 1 30.4-3 15; P.L. 93-523; 40 C.F.R. 141. 

.1518 MAXIMUM CONTAMINANT LEVELS FOR ORGANIC CONTAMINANTS 

fa} Tke following maximum contaminant levels fef organic contaminants apply to community water 
systems aftd- non transient non community water systems: 



GASXo, 



Contaminant 



Maximum 
contaminant 

lo^al i n t->t ■"■ 1 

l\- ' L- 1 rTT 1 1 1 i I 



71 13 2 
75 01 1 
56 23 5 
107 06 2 

70 01 6 
75 35 I 

71 55 6 
106 . 16 7 



Ron/one 
Vinyl Chlorid e 
Carbon tetrachloride 
1.2 Dichcloroethan e 
Trichloroethylene 
1,1 Dichcloroothyleno 
1,1.1 Trichloroethano 
para Dichlorobonjeno 



Mm 

Mm 

Mm 

Mm 

Mm 

Mm 

Mm 

Mm 



fb} Central treatment using granular activated carbon (except fef vinyl chloride) aft4 central treatment 
using packed tow e r aeration aj» identified a* the best available technology fef achieving compliance 
with the maximum contaminant levels fef synthetic organic chemicals. 

fe} Compliance with tMs Rule is fret- required until Januarv 9? 19 . SO » accordanc e with 40 C.F.R.. 
1 11.60. 

The provisions of 40 C.F.R. 141.61 are hereby adopted by reference in accordance with G.S. 
I50B-21.6 and shall include subsequent amendments and editions. A copy mav be obtained from the 
Public Water Supply Section. P.O. Box 29536. Raleigh. NC 27626-0536. 



Authority G.S. 130A-315; P.L. 93-523; 40 C.F.R. 141. 

.1523 PLBL1C NOTIFICATION 
REQUIREMENTS 

fa} T4*e suppli e r ef water shall provide notice 
to consumers served by a public water system 
when the system foils to comply with- a maxi 
mum contaminant l e vel e* treatment technique 
e stablished by- this Subchapter e* which fe*ls to 
comply with the requirements b£ any schedule 
prescribed pursuant to a variance ef exemption 
granted under this Subchapter as follows: 



fT} fef a community wat e r system: 

fAy Notice shall be given by publication i» 
a daily newspaper 64" general circulation ie 
the apea served by the system as soon as 

I H_? VVl trtO . ( J LI t Li I 111' CCtTJt? Ill l t?l cTTCTTT 1 ' t U LI V *T 

aftef the violation &? failure. If the afea 
is set served by a daily newspaper &f 
general circulation, notice shall instead be 
given by publication i» a we e kly n e wspa 
pep ef- general circulation serving the area: 



1469 



6: 1 9 iXOR TH CAROLINA REGIS TER January 2, 1 992 



PROPOSED RULES 



(44) J« addition, notice shall be givon by 
mail delivery (by diroct FHail ef with the 
water bill) ef by hand delivery, ho- latef 
than 44 days aft e r the violation ef failure . 
Notices shall be repeated at least once ev- 
ery thre e months fof as le«g as the vie- 
lation of failur e exists. Mail ef hand 
delivery' shall set he required if the De- 
partment determines that the supplier ef 

i i ■ • i i . \r- l-i Q c . • .~t t-< "i i-'InH ♦ V-i ■"! t lalolian j-t «- I ■ I i I i it-, | 
TT UllT 1 1UJ C7 1 1 LV I \- *J I I 1L' TTTTTTTTTTTTT v7T 1 HI I U1L 1 

within the ' 15 day period. 44*e Depart 
ment ■ .• ■ hall acknowledg e the correction ef 
the violation ef failure if* writing within 
the 15 day period. 
(44 When the area ef the community water 
system is r+et- served by- a daily ef weekly 
newspaper ef general circulation, notice 

r ri n I 1 O^ CM 1 '■"**"» 1 ' •' i O J " 1 ■ 1 ''■»!■' fitt/ii- tVm T '■■ 
nTTOTT t. '\J CITCTT TTTTTTTTT 1 I ULl T "J CTTTCT L11U " 1 

olation ef failuro by hand d e liv e ry ef by 
continuous posting in- conspicuous places 
within the afea curved by the syst e m. 
Notice by hand delivery ef posting must 

1^^^^^^*^ ^^£ ■ , \. . \ i \ ^^^ * ^ ■ l, _ li t, J Wilt tin ^^^^^^r- t tt ■ i t -\ 
I "^ Z~.l 1 1 UU IT^TTTT <JJ f «-" 931 l-"v ''111 I ITT IUI T_ 1 i 1 I H I 1 

42 hours after the violation ef faiJuro fef 
acute violations fas defined m Paragraph 
(a)(1)(D) of this Rule), ef 44 days after 
the violation ef failure fef afty other v-te- 
lation. Posting shall continue f-ef as leftg 
as the ' l iolution ef failure e xists. Notice 
by hand delivery shall be repeated at least 

mr^^ i i li ^ nil \_ ^_' rr™ "Ti ~i~ t\ ti ctt* it "ii?^ cx?t i i i~ 

violation ef failuro exists. 
(44) 14* violations ef the maximum con 
tuminant levels ef contaminants specified 

i '_T 1 1 1~ I ^- 1 "" " *" •"' a i err* I '\ T 'II it; (.ill ettrrTTT? r irrft 

te human health aed including: 
fr) Violation ef the maximum contam 
inant level fe* nitrate as defined » 40- 
( l.R. $111.1 1(b) and- determined ae- 
cording te- 40 C.F.R. §111. 23(d) wh+eb 
are hereby adopted by- reference pursu 
atttto-G^r 15013 14(c); 
fft4 Violation ef the maximum contam 

ml I t ^ t I I 1 1 i ) 1 Tur t i \ 1 - ■ 1 .- ■. t 1 i I , \ t-t U li-ti.ttl tflgoj 
in i C 1 \- ILl rTT7T LUIU1 tTCTTTTTTTTTTy Tl 1 1L 1 1 rCTCTTT 

coliforms e* h-r «4i afe present i» the 
water distribution system, as specified 
i» Rule .1535 ef this Subchapter; a«d 
(*«4 Occurrence e4- a water borne disease 
outbreak m as unliltered system subject 
to the requirements ef 44A NCAC 44G 
^5004- tliroudi O044t aftef December 4&r 
W94t 



notice shall be given by furnishing a copy 
ef the notice te the radio and- television 
stations serving the atea el the community 
water system as soon as possible b«t i» 

n f~\ G a£fl I i-itiir th-iti 2 ) li i -i i i i-L- m ft ■ ir t K^-t ih/a 
rTTT UU,'\_" 1UH.1 TTTTTTT ' XJ I1UU1 ^) III LL.1 1 1 1\J I H' 

lation. 



1/1 I . /-\t- o nun Qfl *-»t rr-i imitir irntiir ClZclaQ] iiiiliira 

i ji r i ui cr i iui i IjT/ iiuiiuilil t^ "ui v_ - i d v -.ti ti 1 1 1 1 t. ? 1 1 ^_t^ 

shall be giv e n within 44 days after the v4- 
o lation e* failuro by hand d e livery e* by 
continuous posting i» conspicuous places 
within the area served by- the system. 
Notice by- hand delivery e* posting must 

UnQi -r-i «"> f g i~\ r-i r~i • I f rn-ii-.-i Kl.'i hut n .-a 1 ■ ■ 1 . 1 1- t K fin 

P^^rTTT UJ r^^TTTT CTT7 l.'UJJl (TIC TTTFT 1 1U 111 HI 1 1 Ilil 1 

?3 hours after the violation ef failure fof 
acute violations fas defined m Paragraph 
(a)(1)(D) e* this Rule), e* 44 days^aftef 
the violation e* failuro fof afty other v4e- 
lation. Posting shall continue fef as long 
as the violation e* failure e xists. Notic e 
by hand delivery shall be repeated at least 

i^L-r-i s~"-i tn -, in: t M Tl U I tl~lj~in t BC { 1 3 T* ' I *■; It Mi ll ■ I .' t F 1 1 *i 

tmrr lii i j l 1 1 1 oo xttttttttttt iui cttt e^tttc uj li iu 

violation e* failure exists. 
fb) ¥he supplier ef water shall provide notice 
te- consumers served by a public water system 
when the supplier fails te perform monitoring 
required by this Section, fails to comply witb a 
testing procedure established by this Subchapt e r 
ef is subject te- a variance e* aft ex e mption 
granted under th*s Subchapter, as follows: 
(44 bef a community wat e r system: 

(A) Notice shall be given within three 
months ef the violation by publication i» 
a daily newspaper ef general circulation i» 

I I It? Cti CT.I ' '!_" ! V \?\1 l* T 1 1 1^ D T ''l ~1 1 I . TT 1 1 IC It I CTI 

ts Hot served by a daily newspaper ef 
general circulation, notice shall instead be 
given by publication m a weekly newspa 
pe? ef general circulation serving the area; 

(44) I» addition, after publication notice 
shall be given by mail delivery fby diroct 

t->-i • ii I ■--» r nritli <lrt ii "t pa. PJ 1 1 t at 1 l-i \ I \ \ ■ i rl i \ 
1 11UJJ 1„' I T" 1 L 1 1 CTZv t ' IIHI I.* Ill ^ iT TTT rTTTTTCT 

delivery at least once e very thre e months 
fef as long as the violation exists &f a 
variance e* exemption remains fr+ elfect. 
(44 When the area ef tfee community wat e r 
system is net- sefyed by a daily e* weekly 
newspaper ef general circulation notice 
shall be given within three months ef the 
violation ef the granting e£ the variance 
Bf exemption, by hand deliver/ e* by 
continuous posting m conspicuous plac e s 
within the atea serv e d by the system. 
Posting shall continue f-e* as bmg as the 
violation exists e* a variance ef exemption 
remains m effect. Notic e by hand delivery 
shall be repeated at least once ovopy three 
months fe* as long as the violation exists 
ef the varianc e ef exemption remains ift 
eff e ct. 
(4) bef a non community water system notice 
shall be given within three months ef the 
violation ef the granting ef the varianc e 
e* exemption, by hand delivery ef by 



6:1 9 NORTH CAROLINA REGISTER January 2, 1992 



1470 



PROPOSED RULES 



continuous posting » conspicuous places 
within toe apea served ©y toe system. 
Posting shall continu e fop as tone as tke 
violation exists, ©f a variance ©f e*- 
emption remains m effect. Notice ©y 
hand delivery shall ©e repeated at- least 
once every three months fof a* long a* toe 

remains fo e ffect. 

fto 4toe supplier el wat e r fop a community 
water system shall aw a copy ef- tbe most recent 
public notic e fop ap>y outstanding violation ef a»y 
maximum contaminant level, ©p apiy- treatm e nt 
technique requirement, e* appy variance Bf e*- 
emption schedule to all tww billing umts ©f Hew- 
hookups prior to ©f at foe time service b e gins. 

(-©} Fach notice required ©y- tops- Rule shall 
provide a cl e ar and readily understandable oxpla 
nation ©f A© violation, any- potential adverse 
h e alth effects. toe population at- ppsto the st e ps 
t&sfc toe public water system is talcing to corr e ct 
such violation, the necessity fof seelong alterna 
to* water supplies, if appyr asd appy preventive 
measure toe consumer should take until toe vto- 
lation is corrected. Fach notice shall ©e con 
spicuous. easily readable, a«4 shall aet contain 
unnecessary technical language ©f similar prob 
lems toat- frustrate toe purpose ©f toe notice. 
Fach notice shall include toe telephone number 
ef toe owner, op e rator, ©f designee ef toe public 
water system a* a source ©f additional in form a 
to+H- concerning toe notice. Multi lingual notice 
shall ©e given if iQ percent ©f more ©f toe con 
sum err . served ©y toe system ape non English 
spealdng. 

fe+ When providing information ©Ft potential 
adverse health effects r e quired ©y Paragraph f4+ 
©f toss- Rule m notices ©f violations ©f maximum 
contaminant levels ©f treatment t e chnique pe- 
quirements. ©f notices ©f toe granting ©f toe 
continued e xistence ©f variances ©f exemptions, 
©f notices ©f failure to comply with a variance 
©f exemption schedule, toe supplier ©f water shall 
include toe language specified » 40 C.F.R. 
§1 1 1.32lc) af*4 fft which is hereby incorporated 
©y reterence including subsequent amendments 
afrd editions. Copies el toe required notice lapp- 
guag e PFray- ©e obtained from toe Public Water 
Supplv S e ction, Division ©f Environmental 
Health, to ©t Be* 20536. Raleigh. >tofto 
Carolina 27626 0536. There is f»© e©st fop tbis 
material. 

fff If toe supplier ef water does pp©t provid e 
notice a* required ©y t&s Rule, toe Department 
pftay- ave public notice tf toe Department meets 
ail requirements »f this Rule. However, toe 
supplier ef wat e r shall r e main r e sponsible fop 
providing the required notice ap>4 pppay he subject 



to action ©y toe Department fop violation ©f toe 
notice requirements. 

fg} The provisions ©f toks R.ule d» ppet- applv 
t©"4-SA NCAC UG T©4-k AM± e&4 .1507(a). 

The provisions of 40 C.F.R. 141.32 are hereby 
adopted bv reference in accordance with G.S. 
150B-21.6 and shall include subsequent amend- 
ments and editions, except that multi-lingual no- 
tice shall be given if 30 percent or more of the 
consumers served bv the svstem are non-English 
speaking. A copy may be obtained from the 
Public Water Supply Section. P.O. Box 29536, 
Raleigh. NC 27626-0536. 

Authority G.S. 130.4-315; P.L. 93-523; 40 C.F.R. 
141. 

.1527 CERTIFIED LABORATORIES 

(a) For the purpose of deterniining compliance 
with the requirements of this Section, samples 
may be considered only if they have been ana- 
lyzed by a laboratory certified by the Environ 
mental Protection Agency ©f the Division of 
Laboratory Services Laboratory Certification 
Branch, exc e pt toat- However, measurements for 
turbidity, free chlorine residual, temperature and 
pH may be performed by any person acceptable 
to the Department. 

(b) Nothing in this Section shall be construed 
to preclude the Department or any duly desig- 
nated representative from taking samples or from 
using the results from such samples to determine 
compliance by a supplier of water with the ap- 
plicable requirements of this Section. 

Authority G.S. 130.4-315; P.L. 93-523; 40 C.F.R. 
141. 

.1536 TREATMENT TECHNIQUES 

The provisions of 40 C.F.R. 141. Subpart K 
are hereby adopted bv reference in accordance 
with G.S. 150B-21.6 and shall include subse- 
quent amendments and editions. A copy may 
be obtained from the Public Water Supplv Sec- 
tion. P.O. Box 29536. Raleigh. NC 27626-0536. 



Authority G.S. 130.4-315; P.L. 
141. 



93-523; 40 C.F.R. 



SECTION .2100 - OPERATING PERMITS 

.2101 PERMITS 

(a) Operating permits are required for all com- 
munity water systems as of January L 1992. 

(b) Permits shall be valid for one year from the 
date of issuance. 

(c) Community water systems which are con- 
structed or which begin operation after January 



14~1 



6: 1 9 NOR TH CAROLINA REGIS TER January 2, 1 992 



PROPOSED RULES 



\j_ 1992 shall obtain a permit prior to providing 
water to any connections. The permit shall be 



($10.00) per day for each day that the fee 
and the penalty are not paid, 
effective on the date that water service to the first (2) One half of the fee set forth in G.S. 



customer beans and shall be valid for one year. 
Statutory Authority G.S. I30A-328. 

.2102 APPLICATION FOR PERMIT 

(a) An application for the issuance or renewal 
of an operating permit for a community water 
system shall be made on forms provided by the 
Department. An application shall include the 
following information: 

Name and identification number of the 



01 

01 

(41 
(51 



community water system; 
Name, address and social security number 
or tax identification number of the sup- 
plier of water; 

Name, address and certification number 
of the certified operator in responsible 
charge of the community water system; 

Name of each certified laboratory- which 
provides analyses of water samples; and 
Population served by the community wa- 
ter system. 

(b) The fee for issuance or renewal of an oper- 
ating permit is set forth in G.S. 130A-328. 

(c) Payment shall be made by check, payable 
to the Department of Fnvironment. Health, and 
Natural Resources and shall accompany the ap- 
plication. 

(d) Applications for operating permits shall not 
be processed prior to the receipt of the required 
fees. 

(e) An operating permit shall be renewed an- 
nually. 

Statutory Authority G.S. 130A-328. 

.2103 INITIAL PERMIT PERIOD 

(a) Notwithstanding Rule .2102(c) of this Sec- 
tion for systems in existence prior to January _f 
1 992, the initial operating permit shall be valid 
for one year beginning January _f 1992. 

(b) Fees for the period beginning January L 
1992 and ending December 3f 1992 shall be 
payable in two installments: 

(1) One half of the fee set forth in G.S. 
130A-328 shall be due by March 1. 1992. 
Failure to pay this portion of the fee by 
March _F 1992 shall result in assessment 
of an administrative penalty pursuant to 
G.S. 130A-22(b) equal to one-fourth of 
the fee set forth in G.S. 130A-328. Fail- 
ure to pay the fee and the administrative 
penalty by April 15, 1992 shall result in 
an additional penalty of ten dollars 



130A-328 shall be due by September ]_, 
1992. Failure to pay this portion of the 
fee by November l± 1992 shall result in 
assessment of an administrative penalty 
pursuant to G.S. 130A-22(b) equal to 
one-fourth of the fee set forth in G.S. 
130A-328. Failure to pay the fee and the 
administrative penalty by December 15, 
1992 shall result in an additional penalty 
of ten dollars ($10.00) per day for each 
day that the fee and the penalty are not 
paid. 

Statutory Authority G.S. I30A-328. 

.2104 RENEWAL FEES 

Payment for permit renewal shall be due 60 
days prior to the expiration of the prior year's 
permit. Failure to pay the fee bv the permit ex- 
piration date shall result in assessment of an ad- 
ministrative penalty pursuant to G.S. 13()A-22(h) 
equal to one-half of the fee set forth in G.S. 
130A-328. Failure to pay the fee and the ad- 
ministrative penalty within 45 days after permit 
expiration shall result in an additional adminis- 
trative penalty of ten dollars ($10.00) per day for 
each day that the fee and the penalty are not 
paid. 

Statutory Authority G.S. 130A-328. 

.2105 REVOCATION 

(a) The Department may revoke or suspend an 
operating permit when it is found that a supplier 
of water has: 

( 1) Failed to pay the annual fee; 

(2) Failed to submit a complete permit appli- 
cation or provided fraudulent or mislead- 
ing information in a permit application; 
or 

(3) Failed to comply with rules governing 
community water systems set forth in 15A 
NCAC 18C. 

(b) Action to revoke or suspend an operating 
permit shall not preclude the Department from 
seeking other remedies authorized by Part 2^ Ar- 
ticle I of Chapter 130 A of the General Statutes. 

Statutory Authority G.S. 130A-328. 

CHAPTER 19 - HEALTH: EPIDEMIOLOGY 

SLBCHAPTER 19A - COMMUNICABLE 
DISEASE CONTROL 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



1472 



PROPOSED RULES 



SECTION .0200 - CONTROL MEASURES FOR 
COMMUNICABLE DISEASES 

.0202 CONTROL MEASURES - HIV 

The following are the control measures for the 
Acquired Immune Deficiency Syndrome (AIDS) 
and Human Immunodeficiency Virus (HIV) in- 
fection: 

( 1) Infected persons shall: 

(a) refrain from sexual intercourse unless 
condoms are used; exercise caution when 
using condoms due to possible condom 
failure; 

(b) not share needles or syringes; 

(c) not donate or sell blood, plasma, platelets, 
other blood products, semen, ova, tissues, 
organs, or breast milk; 

(d) have a skin test for tuberculosis; 

(e) notify future sexual intercourse partners 
of the infection; if the time of initial in- 
fection is known, notify persons who have 
been sexual intercourse and needle part- 
ners since the date of infection; and, if the 
date of initial infection is unknown, notify 
persons who have been sexual intercourse 
and needle partners for the previous year. 

(2) The attending physician shall: 

(a) give the control measures in Paragraph (1) 
of this Rule to infected patients, in ac- 
cordance with 15A NCAC 19A .0210; 

(b) gws the patient a form provided ©y- the 

Division ef Epidemiology a©4 encourage 
it* ©se fe* listing partn e rs £©f whom ©e- 
tification is required m Subparagraph 
(l)(o) ©£ th» Pviilo; the physician shall en- 
courage the patient to arrange an ap- 
pointment with a Division of 
Epidemiology AIDS HIV/STD counselor 
regarding partner notification as4 te 
compl e t e the form, a©4 eith e r take it t© 
the Division ©f- Epidemiology AIDS 
counselor ©f mail it te the Division so 
that the Division may undertake coun- 
seling of the partners to prevent further 
transmission; The Division ©f- 
Epidemiology shall destroy the lis* after- it 
ha* counseled the partners ©f after- a r-ea- 
sonabl e attempt has been made t© de set 

(c) If the attending physician knows the iden- 
tity of the spouse of an HIV-infected pa- 
tient and has not, with the consent of the 
infected patient, notified and counseled 
the spouse appropriately, the physician 
shall list the spouse on a form provided 
by the Division of Epidemiology and shall 
mail the form to the Division; the Divi- 
sion will undertake to counsel the spouse; 
the attending physician's responsibility to 



notify exposed and potentially exposed 
persons is satisfied by fulfilling the re- 
quirements of Subparagraph (2)(b) and 
(c) of this Rule; 

(d) advise infected persons concerning proper 
clean-up of blood and other body fluids; 

(e) advise infected persons concerning the risk 
of perinatal transmission and transmission 
by breastfeeding. 

(3) The attending physician of a child who is 
infected with HIV and who may pose a sig- 
nificant risk of transmission in the school or 
day care setting because of open, oozing 
wounds or because of behavioral abnor- 
malities such as biting shall notify the local 
health director. The local health director 
shall consult with the attending physician 
and investigate the circumstances. 

(a) If the child is in school or scheduled for 
admission and the local health director 
determines that there may be a significant 
risk of transmission, the local health di- 
rector shall consult with an interdiscipli- 
nary committee, which shall include 
appropriate school personnel, a medical 
expert, and the child's parent or guardian 
to assist in the investigation and determi- 
nation of risk. The local health director 
shall notify the superintendent or private 
school director of the need to appoint 
such an interdisciplinary committee. 

(i) If the superintendent or private school 
director establishes such a committee 
within three days of notification, the local 
health director shall consult with this 
committee. 

(ii) If the superintendent or private school 
director does not establish such a com- 
mittee within three days of notification, 
the local health director shall establish 
such a committee. 

(b) If the child is in school or scheduled for 
admission and the local health director 
determines, after consultation with the 
committee, that a significant risk of trans- 
mission exists, the local health director 
shall: 

(i) notify the parents; 

(ii) notify the committee; 

(iii) assist the committee in determining 
whether an adjustment can be made to the 
student's school program to eliminate sig- 
nificant risks of transmission; 

(iv) determine if an alternative educational 
setting is necessary to protect the public 
health; 

(v) instruct the superintendent or private 
school director concerning appropriate 



1473 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



PROPOSED RULES 



protective measures to be implemented in 
the alternative educational setting devel- 
oped by appropriate school personnel; 
and 
(vi) consult with the superintendent or pri- 
vate school director to determine which 
school personnel directly involved with 
the child need to be notified of the HIV 
infection in order to prevent transmission 
and ensure that these persons are in- 
structed regarding the necessity for pro- 
tecting confidentiality, 
(c) If the child is in day care and the local 
health director determines that there is a 
significant risk of transmission, the local 
health director shall notify the parents that 
the child must be placed in an alternate 
child care setting that eliminates the sig- 
nificant risk of transmission. 
(4) When health care workers or other persons 
have a needlestick or nonsexual non-intact 
skin or mucous membrane exposure to 
blood or body fluids that poses a significant 
. risk of HIV transmission, the following shall 
apply: 

(a) When the source person is known: 

(1) The attending physician or occupational 
health care provider responsible for the 
exposed person, if other than the attend- 
ing physician of the person whose blood 
or body fluids is the source of the expo- 
sure, shall notify the attending physician 
of the source that an exposure has oc- 
curred. The attending physician of the 
source person shall discuss the exposure 
with the source and shall test the source 
for HIV infection unless the source is al- 
ready known to be infected. The attend- 
ing physician of the exposed person shall 
be notified of the infection status of the 
source. 

(ii) The attending physician of the exposed 
person shall inform the exposed person 
about the infection status of the source, 
offer testing for HIV infection as soon as 
possible after exposure and at reasonable 
intervals up to one year to determine 
whether transmission occurred, and, if the 
source person was HIV infected, give the 
exposed person the control measures 
fisted in Subparagraphs (l)(a) through (c) 
of this Rule. The attending physician of 
the exposed person shall instruct the ex- 
posed person regarding the necessity for 
protecting confidentiality. 

(b) When the source person is unknown, the 
attending physician of the exposed person 
shall inform the exposed person of the risk 



of transmission and offer testing for HIV 
infection as soon as possible after expo- 
sure and at reasonable intervals up to one 
year to determine whether transmission 
occurred, 
(c) A health care facility may release the name 
of the attending physician of a source 
person upon request of the attending 
physician of an exposed person. 

(5) The attending physician shall notify the 
local health director when the physician, in 
good faith, has reasonable cause to suspect 
a patient infected with HIV is not following 
or cannot follow control measures and is 
thereby causing a significant risk of trans- 
mission. 

(6) When the local health director is notified 
pursuant to Paragraph (5) of this Rule, of a 
person who is mentally ill or mentally re- 
tarded, the local health director shall confer 
with the attending mental health physician 
or appropriate mental health authority and 
the physician who notified the local health 
director to develop an appropriate plan to 
prevent transmission. 

(7) The Director of Health Services of the 
North Carolina Department of Correction 
and the prison facility administrator shall be 
notified when any person confined in a state 
prison is determined to be infected with 
HIV. If the prison facility administrator, in 
consultation with the Director of Health 
Services, determines that a confined HIV 
infected person is not following or cannot 
follow prescribed control measures, thereby 
presenting a significant risk of HIV trans- 
mission, the administrator and the Director 
shall develop and implement jointly a plan 
to prevent transmission, including making 
appropnate recommendations to the unit 
housing classification committee. 

(8) The local health director shall ensure that 
the health plan for local jails include educa- 
tion of jail staff and prisoners about HIV, 
how it is transmitted, and how to avoid ac- 
quiring or transmitting this infection. 

(9) Health care workers with HIV infection 
who have secondary infections or open skin 
lesions which would place patients at risk 
shall not provide direct patient care. Oth- 
erwise, these control measures do not re- 
quire restrictions in the workplace of persons 
with HIV infection. 

(10) Local health departments shall provide 
f-we testing for HIV infection with individual 
pre- and post-test counseling at no charge to 
the patient. By August 1, 1991, the State 
Health Director shall designate a minimum 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



14~4 



PROPOSED RULES 



of 16 local health departments to provide 
anonymous testing. Beginning September 
1, 1991, only cases of confirmed HIV in- 
fection identified by anonymous tests con- 
ducted at local health departments 
designated as anonymous testing sites pur- 
suant to this Subparagraph shall be reported 
in accordance with 15A NCAC 19A 
.0102(a)(3). All other cases of confirmed 
HIV infection shall be reported in accord- 
ance with 15A NCAC 19A .0102(a)(1) and 
(2). Effective September 1, 1994, anony- 
mous testing shall be discontinued and all 
cases of confirmed HIV infection shall be 
reported in accordance with 15A NCAC 
19A .0102(a)(1) and (2). Persons with pos- 
itive tests who were tested anonymously 
shall be given a form provided by the Divi- 
sion of Epidemiology and encouraged to ar- 
range an appointment with a Division of 
Epidemiology - HIV STD counselor regard- 
ing partner notification and to list their 
partners for whom notification is required in 
Subparagraph ( l)(c) of this Rule on the 
form, and either take it to the Division of 
Epidemiology HIV STD counselor or mail 
it to the Division so that the Division mav 
undertake counseling of the partners to pre- 
vent further transmission. The Division of 
Epidemiology shall destroy the list after it 
has counseled the partners or after a reason- 
able attempt has been made to do sck 

(11) Appropriate counseling for HIV testing 
shall include individualized pre- and post- 
test counseling which provides risk assess- 
ment, risk reduction guidelines, appropriate 
referrals for medical and psychosocial ser- 
vices, and, when the person tested is deter- 
mined to be infected with HIV, control 
measures. 

(12) A person charged with an offense that in- 
volves nonconsensual vaginal, anal, or oral 
intercourse, or that involves vaginal, anal, 
or oral intercourse yvith a child 12 years old 
or less shall be tested for HIV infection if: 

(a) probable cause has been found or an 
indictment has been issued; 

(b) the victim notifies the local health director 
and requests information concerning the 
HIV status of the defendant; and 

(c) the local health director determines that 
the alleged sexual contact involved in the 
offense would pose a significant risk of 
transmission of HIV if the defendant were 
HIV infected. If in custody of the De- 
partment of Correction, the person shall 
be tested by the Department of Correction 



and if not in custody, the person shall be 
tested by the local health department. 
The Department of Correction shall in- 
form the local health director of all such 
test results. The local health director shall 
inform the victim of the results of the test, 
counsel the victim appropriately, and in- 
struct the victim regarding the necessity 
for protecting confidentiality. 

(13) A local health department or the Depart- 
ment may release information regarding an 
infected person pursuant to G.S. 
BOA- 143(3) only when the local health de- 
partment or the Department has provided 
direct medical care to the infected person 
and refers the person to or consults with the 
health care provider to whom the informa- 
tion is released. 

(14) Notwithstanding Rule .0201(d) of this 
Section, a local or state health director may 
require, as a part of an isolation order issued 
in accordance with G.S. 130A-145, compli- 
ance with a plan to assist the individual to 
comply with control measures. The plan 
shall be designed to meet the specific needs 
of the individual and may include one or 
more of the following available and appro- 
priate services: 

(a) substance abuse counseling and treatment; 

(b) mental health counseling and treatment; 
and 

(c) education and counseling sessions about 
HIV, HIV transmission, and behavior 
change required to prevent transmission. 

Statutory Authority G.S. BOA- 1 33; BOA- 135; 
B0A-144; BOA-145; BOA- 148(h). 

SUBCHAPTER 19B - INJURY CONTROL 

SECTION .0200 - BLOOD ALCOHOL TEST 
REGULATIONS 

.0203 APPROVED PERMITS 

(a) A blood analyst performing chemical ana- 
lyses of blood in accordance yvith the description 
set out in the application for an initial, renewal, 
or modified permit shall be deemed to be per- 
forming such analyses in a manner approved by 
the Director. 

(b) All initial, modified, and renewal permits 
shall be valid for a period of »»* y e ar, two years. 

Statutory Authority G.S. 20-139.1 (b). 

SECTION .0300 - BREATH ALCOHOL TEST 
REGULATIONS 

.0302 LIMITATION OF PERMIT 



1475 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



PROPOSED RULES 



(a) Permits may be limited in scope to the 
methods or instruments for performing chemical 
analyses in which the individual applying for a 
permit has demonstrated competence. This lim- 
itation may be upon the basis of the methods or 
instruments that received primary emphasis in 
the particular course of instruction attended by 
the applicant in the event that successful com- 
pletion of the course is offered as proof of ability 
to perform chemical analyses. Initial and re- 
newal permits shall state the date upon which 
they are to become effective and the date upon 
which they are to expire. The expiration date 
shall be no more than 4-3 24 months after the ef- 
fective date. 

(b) Permits granted under this Section, initial 
and renewals, shall be valid only during the pe- 
riod the permittee is employed by a law enforce- 
ment agency, the Injury Control Section or a 
member of its instructional staff, or by some 
other federal, state, county or municipal agency 
with the responsibility of administering chemical 
analyses to drivers charged with implied consent 
offenses. 

Statutory Authority G.S. 20-139.1 (b). 

.0304 CONDITIONS FOR RENEWAL OF 
PERMIT 

(a) Permits shall be subject to renewal at expi- 
ration, or at such time prior to expiration as is 
convenient for the Director, upon demonstration 
by the permittee of: 

(1) continuing ability to perform accurate and 
reliable chemical analyses; 

(2) ability to satisfactorily explain the method 
of operation of the breath-testing instru- 
ment for which he is applying for a re- 
newal permit to operate; 

(3) continued employment by a law enforce- 
ment agency, the Injury Control Section 
or a member of its instructional staff, or 
by some other federal, state, county or 
municipal agency with the responsibility 
of administering chemical analyses to 
drivers charged with implied consent of- 
fenses; and 

(4) proof of good character, if desired by the 
Director. 

(b) Individuals successfully completing a 
chemical test for alcohol retraining rccertification 
course conducted by the Injury Control Branch 
Section shall be deemed to have met the re- 
quirements of (a) (1) and (2) of this Rule for the 
first and second subsequent renewal of permits. 
Subsequent renewal ef permits shah be based e» 
r e certification requirements as FHay- be requir e d 
ey the Director. 



(c) Individuals desiring thifd ef subsequent first 
and subsequent renewal permits, after expiration 
of their permits, shall successfully complete the 
following Injury Control Section course require- 
ments prior to the granting of renewal permits, 
unless an exception is granted by the Director: 
( 1 ) Chemical Tests for Alcohol Recertification 
Course if the permit has been expired less 
than six months; 
(3) Chemical Tests fof Alcohol Retraining 
Course if the permit has been expired si* 

rTTTTTTTTTo I'Ul 1 \J a O 1 1 Hill I TT LIIl T I \J t_l I rTTTXITCTTTTy 

(3) (2^ Chemical Tests for Alcohol Operators 
Course if the permit has been expired 
twenty four six months or longer. 
(44 Individuals desiring hfst ef second r e n e wal 
permits, after expiration ef their p e rmits, shall 
successfully complete the following Injury Con 
tfef Section cours e requirements prior te the 
granting ef renewal permits, unless a» exception 
ts granted by- the Director: 

(44 Chemical Tests fof Alcohol Retraining 
Cours e if the permit has been expired lew* 
than twelve months; and 
£3) Chemical Tests fof Alcohol Operators 
Cours e if the permit has been expired 
twelv e months ef longer. 

Statutory Authority G.S. 20-139.1 (b). 

.0305 EXPIRATION DATES OF RENEWAL 
PERMITS (REPEALED) 

P ,-at-i aiiioI »-.■ irm it.- I'll • . 1 I it • ti . \ til^ ; 1 I l 1 l I l I t-i. \fi M Mi ll 

they a*e te become effective a«4 the date upon 
which they afe te oxpire. 44te expiration date ef 
the fost renewal permit shall he tfe more than 44 
months after the effective date. 44*e expiration 
date ef subsequent renewal permits shall he Re 
mor e than twe years after the effective date. 

Statutory Authority G.S. 20-/39. 1(b). 

.0309 QUALIFICATIONS OF MAINTENANCE 
PERSONNEL 

(a) Preventive maintenance on all breath- 
testing instruments shall be performed by a 
chemical analyst who has successfully completed 
the chemical tests for alcohol technical supervi- 
sor's school or a maintenance course for a spe- 
cific instrument, as conducted by the Injury 
Control Section, unless an exception is granted 
by the Director. 

(b) Chemical analysts qualifying under this 
Rule shall be granted certificates by the Director 
authorizing the performance of preventive main- 
tenance on specific models of breath-testing in- 
struments. 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



1476 



PROPOSED RULES 



( 1) Certificates shall be granted for an indefi- 
nite period but shall be valid only during 
the period that the chemical analyst pos- 
sesses a current valid permit to perform 
chemical analyses of the breath on the 
specific models of breath-testing instru- 
ments for which preventive maintenance 
is being performed. 

(2) Certificates shall be subject to revocation 
under the same provisions specified under 
Rule mM .0308 of this Section for revo- 
cation of permits to perform chemical an- 
alyses. 

(3) The Director shall have the same evalu- 
ation authority over holders of certificates 
as he possesses over permittees under 
Rule 4»39 .0307 of this Section. 



Statutory Authority G.S. 20-139. Kb). 

.0311 LOG 

Each permittee shall keep a leg id e ntifying e ach 
individual who refuses to submit to a chemical 
analysis. a»4 recording the name, results, afto 
other identifying information to? each individual 
submitting to a chemical analysis. Logs shall be 
kept eft forms provided by- toe Department and 
a copy shall be forward e d monthly to toe Direc 
tofr Any leg identifying a blood analysis shall 
Ret- be submitted until toe result is recorded. 

(a) Logs shall be kept on forms provided by the 
Department. Each permittee shall keep a 
monthly log identifying each individual who 
submits to or refuses a chemical analysis by 
completing all identifying information. If no 
chemical analysis is performed during the month, 
the permittee shall enter name, permit number, 
agency, month and write "NONE" across the 
form. All monthly logs shall be forwarded to the 
Director and are due bv the end of the following 
month unless otherwise specified in Paragraph 
(b) of this Rule. I lowever, any log identifying a 
blood analysis shall not be submitted until the 
result is recorded. 



(b) A permittee who performs chemical ana- 
lyses of the breath utilizing an automated 
breath-test instrument placed in service for the 
statewide program administered bv the Injun- 
Control Section of the Department shall not be 
required to comply with Paragraph (a) of this 
Rule. 

Statutory Authority G.S. 20-16.51 j); 20-139.1 (b). 

.0320 INTOXILYZER: MODEL 5000 

The operational procedures to be followed in 
using the Intoxilvzer, Model 5000 are: 



( 1 ) Insure observation period requirements 
have been met; 

(2) Insure instrument displays proper time and 
date; 

{¥} Insur e alcoholic breath simulator 

thermometer shows proper oporating tarn 
poraturo a»4 insure simulator is properly 
connected to instrument; 

(44 (3J_ Press "START TEST", when "IN- 
Sl !■'. 1 ( A K 1 ) ' appears, insert test record] 

(Sj Wbeft -INSERT CARD" appears, msert 
test- record; 

(4j (4j Enter appropriate information; 

(p) (5| Insure instrument displays expected re- 
sults from the alcoholic breath simulator; 

& (61 When "PLEASE BLOW" appears, 
collect breath sample; 

(% (21 When "PLEASE BLOW" appears, 
collect breath sample; 

(4-Q* (81 When test record ejects, remove and 
record times and results. 

If the alcohol concentrations differ by more 
than 0.02, a third or subsequent test shall be ad- 
ministered as soon as feasible by repeating steps 
( 1) through fto> (6), (7) if necessary, and (8). 

Statutory Authority G.S. 20-139. 1(b). 

.0321 PREVENTIVE MAINTENANCE: 
INTOXILYZER: MODEL 5000 

The preventive maintenance procedures for the 
Intoxilvzer Model 5000 to be followed at least 
once every four months are: 

(1) Verify alcoholic breath simulator 
thermometer shows proper operating tern 
p e ratur e a»a insur e simulator is properly 
connected to instrument; 34 degrees, plus or 
minus .2 degree centigrade; 

(2) Verify instrument displays proper time and 
date; 

(3) Press "START TEST", when "INSERT 
CARD" appears, insert test record; 

(4} Wkeft "INSERT CARD" appears, tftsert 



tost- record; 
(-§-* (4j Enter appropriate information; 
(-4) (51 Verify instrument displays expected re- 
sults from the alcoholic breath simulator; 
m (6| When "PLEASE BLOW" appears, 

collect breath sample; 
(8) (21 When "PLEASE BLOW" appears, 

collect breath sample; 
(£} (81 When test record ejects, remove and re- 
cord simulator times and results; 
(44* Repeat stops 4H through ftffr 
(9) Verify Diagnostic Program; 
(44+ (10) Verify alcoholic breath simulator sol- 
ution is being changed every 44 davs four 



1477 



6: 1 9 NOR TH CAROLINA REGIS TER January 2, 1 992 



PROPOSED RULES 



months or after 2§> 125 tests, whichever oc- 
curs first. 
A signed original of the preventive maintenance 
checklist shall be kept on file for at least three 
years. 

Statutory Authority G.S. 20-139.1 (b)(b4). 

CHAPTER 21 - HEALTH: PERSONAL HEALTH 

SUBCHAPTER 2 1 F - CHILD HEALTH 

SECTION .0500 - SCREENING OF NEWBORNS 

.0501 SUBMISSION OF BLOOD SPECIMENS 
FOR SCREENING OF NEWBORNS 

(a) Health care providers shall draw blood 
specimens from every' infant born in North 
Carolina and shall submit such specimens to the 
North Carolina State Laboratory" for Public 
Health for testing for the following metabolic and 
other hereditary' and cogenital disorders: 



( 1 ) phenylketonuria (PKL), 

(2) galactosemia, 

(3) primary hypothyroidism, 

(4) congenital adrenal hyperplasia, 

(5) sickle cell disease (non-white infants only). 
(b) Notwithstanding Paragraph (a) of this 

Rule, parents or guardians may object to screen- 
ing in accordance with G.S. 130A- 125(b). 

Statutory Authority G.S. BOA- 1 25. 

SUBCHAPTER 21 F - CHILDREN'S SPECIAL 

HEALTH SERVICES: CHILDREN AND YOUTH 

SECTION 

SECTION .0700 - ROSTERS 

.0701 QUALIFICATIONS 

(a) There shall be two categories of rostered 
physicians under Children's Special Health Ser- 
vices: 

(1) In order to be accorded full rostering sta- 
tus, an applicant must be a resident of 
North Carolina, licensed to practice med- 
icine in the state, have hospital privileges 
in the community of his/her practice, and 
be board-certified in pediatrics. Physi- 
cians who are not board-certified in 
pediatrics may be fully rostered if they are 
board-certified in a specialty with pediatric 
training in that specialty, and: 

(A) meet the applicable membership criteria 
of the American Academy of Pediatrics 
for that specialty, or 

(B) meet substantially equivalent creden- 
tialing requirements for a pediatric sub- 
specialty in a specialty. 



(2) A physician may be conditionally rostered 
if that physician serves an area not ade- 
quately served by a fully rostered physi- 
cian. A conditionally rostered physician 
shall meet all of the requirements set forth 
in Paragraph (a)(1) of this Rule for a fully 
rostered physician, except for the require- 
ments that a physician be board-certified 
in pediatrics and meet the applicable 
membership criteria of the American 
Academy of Pediatrics for that specialty 
or meet substantially equivalent creden- 
tialing requirements for a pediatric sub- 
specialty in a specialty. However, the 
physician shall possess pediatric experi- 
ence in a specialty and provide services 
necessary for the care of children in an 
area that is not adequately served. The 
status of the conditionally rostered physi- 
cian shall be reviewed every three years. 

(b) Physicians rostered by the Program prior 
to September 1, 1989 shall be considered fully 
rostered. 

(c) The orthodontist 'prosthodontist applicant 
for rostering must be a resident of North 
Carolina, licensed to practice dentistry in the 
state, board eligible or certified by the American 
Board of Orthodontics or by the American 
Board of Prosthodontics, respectively, and a 
member of a Children's Special Health Services 
oral facial clinic team. 

(d) The speech/language pathologist or 
audiologist applicant for rostering must be a res- 
ident of North Carolina, licensed to practice in 
the state in accordance with G.S. Chapter 91), 
.Article 22. and certified b\ the American Speech 
and Hearing Association. In addition, the ap- 
plicant must be practicing 20 hours per week 
with at least 12 hours m direct patient contact, 
and within the previous two years, an average of 
one-half or more of the patients served have been 
children. 

Statutory Authority G.S. 130A-I24. 

CHAPTER 24 - GENERAL PROCEDURES FOR 
PUBLIC HEALTH PROGRAMS 

SUBCHAPTER 24A - PAYMENT PROGRAMS 

SECTION .0200 - ELIGIBILITY 
DETERMINATIONS 

.0202 DETERMINATION OF FINANCIAL 
ELIGIBILITY 

(a) A patient must meet the financial eligibility 
requirements of this Subchapter to be eligible for 
benefits provided by any of the payment pro- 
grams, except as provided in Paragraph (b) of 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



1478 



PROPOSED RULES 



this Rule, financial eligibility for all state funded 
payment programs shall be determined through 
application of the General Assembly's financial 
eligibility scales for non-medicaid medical pro- 
grams. The definition of annual net income in 
Rule .0203 of this Subchapter and the definitions 
of family in Rule .0204 of this Subchapter shall 
be used in applying the General Assembly's fi- 
nancial eligibility scales and the federal poverty 
scale for payment program eligibility purposes. 

(b) A person shall be financially eligible for the 
federal AIDS Drug Reimbursement Program if 
the person's net income is at or below 85 percent 
of the federal poverty level. 

(c) The financial eligibility requirements of this 
Subchapter shall not apply to: 

(1) Migrant Health Program; 

(2) Children's Special Health Services when 
the requirements of 15A NCAC 21F 
.0800 are met; 

(3) School Health Program financial eligibility 
determinations performed by a local 
health department which has chosen to 
use the financial eligibility standards of the 
Department of Public Instruction's free 
lunch program; 

(4) Prenatal outpatient services sponsored 
through local health department delivery 
funds, 15A NCAC 21C .0200; or through 
Perinatal Program high risk maternity 
clinic reimbursement funds, 15A NCAC 
21C .0300; 

(5) Diagnostic assessments for infants up to 
12 months of aye with sickle cell syn- 
drome. 

(d) Except as provided in Paragraph (e) of this 
Rule, once an individual is determined financially 
eligible for payment program benefits, the indi- 
vidual shall remain financially eligible for a pe- 
riod of one year after the date of application for 
financial eligibility unless there is a change in the 
individual's family size pursuant to Rule .0204 
of this Subchapter or his family's financial re- 
sources or expenses during that period. If there 
is a change, financial eligibility for payment pro- 
gram benefits must be redetermined. Financial 
eligibility must be redetermined at least once a 
year. 

(e) For purposes of the Kidney Program, once 
an individual is determined to be financially eli- 
gible, if the application for financial eligibility was 
received by the Department in the fourth quarter 
of the fiscal year, the individual shall remain fi- 
nancially eligible for benefits under the Kidney 
Program until the end of the next fiscal year un- 
less there is a change in the individual's family 
size pursuant to Rule .0204 of this Subchapter 



or his family's financial resources or expenses 
during that period. 

(f) If the most current financial eligibility form 
on file with the Department shows that the pa- 
tient was financially eligible on the date an au- 
thorization request was received, the 
authorization request may be approved so long 
as the authorized service does not extend more 
than 90 days after the term of eligibility expires. 

Statutory Authority G.S. 130.4-5(3); I30A-124; 
130 A- 127; BOA- 129; 130 A- 177; 130 A- 205. 

SECTION .0300 - ELIGIBILITY PROCEDURES 

.0303 PAYMENT LIMITATIONS 

(a) Payment program payments will be made 
for authorized services only when funds are 
available. 

(b) During the last six months of the fiscal year, 
the State Health Director may limit payment 
program benefits that can be authorized when the 
total amount of outstanding authorizations, plus 
the estimated authorizations for the remainder 
of the fiscal year, less estimated cancellations, 
exceeds 100 percent of the program's cash bal- 
ance. The State Health Director shall rescind the 
limitations at the end of the fiscal year, or prior 
to the end of the fiscal year if sufficient funds 
become available to authorize full program ben- 
efits for the remainder of the fiscal year. 

(c) Payment program benefits shall be available 
only for services or appliances which are not 
covered by another third party payor or which 
cannot be paid for out of funds received in 
settlement of a civil claim. However, payment 
program benefits shall be available for Children's 
Special Health Services sponsored clinic patients 
who cannot reasonably be examined or treated 
by a Medicaid provider or an authorized provider 
for another third party r payor because of trans- 
portation problems, a need for emergency care, 
or similar exceptional situations. All exceptions 
must be approved by the Children's Special 
Health Services program's medical director. 
Also, Children's Special Health Services may 
make payments for services provided to Medicaid 
patients when acting as a Medicaid provider un- 
der an agreement making the program eligible for 
reimbursement from Medicaid. Providers shall 
take reasonable measures to collect other third 
party payments. For the purposes of this Sub- 
chapter, third party payor means any person or 
entity that is or may be indirectly liable for the 
cost of services or appliances furnished to a pa- 
tient. Third party payors include, without limi- 
tation, the following: 



1479 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



PROPOSED RULES 



(1) School services, including physical or oc- 
cupational therapy, speech and language 
pathology and audiology services, and 
nursing services for special needs children; 

(2) Medicaid; 

(3) Medicare, Part A and Part B; 

(4) Insurance; 

(5) Social Services; 

(6) Worker's compensation; 

(7) CHAMPUS; and 

(8) Head Start programs. 

(d) The Department shall not pay Medicaid 
co-payments or in any other way supplement 
Medicaid payments. 

(e) (4) If prior to the Department's payment for 
particular services or appliances, the provider, the 
patient, or a person responsible for the patient 
receives partial or total payment for the services 
or appliances from a third party payor, or re- 
ceives funds in settlement of a civil claim, the 
Department shall pay only the amount, if any, 
by which the Department's payment rate exceeds 
the amount received by the person. For the 
purpose of this Rule the Department's payment 
rate means the rate of reimbursement established 
in 15A N'CAC 24A .0400. 

[J} (e) Notwithstanding Paragraph (4) (c) of this 
Rule, when the provider, the patient or a person 
responsible for the patient receives other third 
party payments equal to or exceeding the De- 
partment's payment rate, the Department shall 
pay the difference between the other third party 
payments and the provider's charge for an 
adopted child that meets the requirements of 1 5A 
NCAC 21 F .0801. The Department's payment 
shall not exceed the payment rate in Section 
.0400 of the Subchapter. 

(g) (4) If after the Department makes payment 
for particular services or appliances, the provider, 
the patient, or a person responsible for the pa- 
tient receives partial or total payment for the 
services or appliances from a third party payor, 
or receives funds in settlement of a civil claim 
which are available to pay for the services or ap- 
pliances, the person receiving the payment shall 
reimburse the Department to the extent of the 
amount received by the person without exceeding 
the amount of the Department's prior payment 
to the provider. This reimbursement shall be 
made to the Department within 45 days after re- 
ceipt of the third party payment. 

(h) fg4 Notwithstanding Paragraph ff4 [tQ of this 
Rule, if after the Department makes payment for 
particular services or appliances for an adopted 
child that meets the requirements of 15A NCAC 
21F .0801, the provider receives partial or total 
payment from a third party payor, the provider 
shall only be required to reimburse the Depart- 



ment the amount by which the total of payments 
exceeds the provider's charge. 

(i) fh4 If the Department requests a refund of a 
payment made to a provider, the refund shall be 
made to the Department within 45 days after the 
date of the refund request. 

Statutory Authority G.S. l30A-5(3); 130A-124; 
130A-127; 130A-129; 130A-177; I30A-205. 

TITLE 21 - LICENSING BOARD 



lyotice is hereby given in accordance with G.S. 
I50B-21.2 that the North Carolina Board of 
Pharmacy intends to amend and adopt rule (s J 
cited as 21 NCAC 46 .1403. J 503, .1806, and 
.2504. 

1 he proposed effective date of this action is April 
1, 1992. 



Th 



he public hearing will be conducted at 2:00 
p.m. on January 28, 1992 at the Institute of 
Pharmacy, 109 Church Street, Chapel Hill, N.C. 

IXeason for Proposed Action: Rule .1403 - This 
amendment is necessary to ensure all subsections 
of Rule are consistent. 

Ride .1503 - This amendment allows an applicant 
credit for actual hours of experience obtained in 
clinical programs and allows a maximum of 500 
hours credit for experience obtained outside clin- 
ical programs. 

Rule .1806 - This amendment allows the transfer 
of prescription information without direct com- 
munication between two pharmacists if both phar- 
' macies are under common ownership or have a 
contractual agreement. 

Rule .2504 - This adoption is necessary to ensure 
patients are adequately informed about their pre- 
scription medications. 



Cc 



omment Procedures: Persons wishing to pres- 
ent oral data, views or arguments on a proposed 
rule or tide change may file a notice with the 
Board at least 10 days prior to the public hearing 
at which the person wishes to speak. Comments 
should be limited to 10 minutes. The Board's 
address is P. O. Box 459, Carrboro, NC 27510. 
Any person may fde written submission of com- 
ments or argument at any time up to and including 
February 3, 1992. 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



1480 



PROPOSED RULES 



CHAPTER 46 - BOARD OF PHARMACY 

SECTION .1400 - HOSPITALS: OTHER 
HEALTH FACILITIES 



.1403 



AND 



Auxiliary' drug 
supplementary 



DRLG INVENTORIES 
EMERGENCY KITS 

(a) Definitions »«4 Purpose. 
inventories are intended as a 
source for drugs when the pharmacy is closed or 
the pharmacist is not available. Emergency drugs 
kits are intended for use in a life-threatening cri- 
sis, not as convenient supply. Acquiring drugs 
from the pharmacy by a nurse when the phar- 
macy is not open as specified in this Rule should 
be rare and occur only if the drug desired is not 
available in the auxiliary drug inventory. The 
use of auxiliary drug inventories is required to 
prevent frequent entries into the pharmacy by 
non-pharmacy personnel. 

(b) Access te- Drugs. Except as provided in (c) 
of this Rule, only a pharmacist may have access 
to the institutional pharmacy inventory of drugs. 
Only specifically authorized persons, as deter- 
mined by the pharmacist -manager, may obtain 
access to the auxiliary drug inventory by key or 
combination lock, and the inventory shall be 
sufficiently secure to deny access to unauthorized 
persons. The pharmacist -manager shall, in con- 
nection with the appropriate committee of the 
institution, develop inventory listings of those 
drugs to be included in such inventories and shall 
insure that: 

The listed drugs are available therein and 
are properly labeled: 

Only prepackaged drugs are available 
therein, in amounts sufficient for immedi- 
ate therapeutic requirements; 

Whenever access to such inventor.' shall 
have been gained, written licensed 
prescriber's orders and proofs of use, if 
applicable, are provided: 

After each use of the auxiliary drug in- 
ventory, the pharmacy shall be notified in 
accordance with written policies; 
The contents of the auxiliary drug inven- 
tory are checked by an authorized a re- 
sponsible person in accordance with 
written policies and procedures of the in- 
stitution and inventoried at least monthly 
by pharmacy personnel; and 
Written policies and procedures are estab- 
lished to implement the requirements of 
this Rule. 

(c) Limited Access by Nurse. When the 
pharmacist is absent from the institution, a reg- 
istered nurse, an authorized person, in accord- 
ance with written policies and procedures of the 
institution, mav obtain from an institutional 



(1) 
(2) 

(3) 

.4, 
(5) 



(6) 



pharmacy inventory of drugs, a drug or 
medication necessary to administer to a bona fide 
patient in carrying out treatment and medication 
orders as prescribed by a licensed prescriber, 
when such drug is not available in floor supplies 
to meet the immediate need. This authorized 
person shall leave in the pharmacy, on a suitable 
form, a record of any drugs removed, showing 
the name of the patient, the name of the drug, the 
dosage size, the amount taken, the date and time, 
and the signature of the authorized person. A 
system shall be developed by the pharmacist- 
manager and used by all applicable personnel 
authorized persons to document the entry. Such 
records shall be kept for three years. This Para- 
graph shall not preclude the use of technical per- 
sonnel approved by the pharmacist -manager 
from being present in the pharmacy at other than 
regular service hours and performing certain 
clerical, repackaging and distributive functions in 
connection with a system of institutional drug 
distnbution according to written policies and 
procedures if the drugs so handled are not per- 
mitted to leave the pharmacy until all work so 
performed has been checked and certified as be- 
ing correct by the pharmacist. This Paragraph 
shall not preclude the use of an emergency drug 
kit or auxiliary drug inventory as provided for in 
this Rule. 

(d) Kits. Emergency drugs shall be stored in a 
container secured by a non-reusable, easily 
breakable seal, hereinafter referred to as the 
"emergency drug kit." The contents of the 
emergency drug kit shall be determined by the 
pharmacy and therapeutics committee or equiv- 
alent, and controlled substances in Schedules II 
through V shall not be allowed except as pro- 
vided in Paragraph (5) of this Rule. The emer- 
gency drug kit shall be periodically reviewed and 
examined by a pharmacist not less than quar- 
terly. The contents of the emergency drug kit 
shall be in compliance with all applicable federal, 
state and local laws, rules and regulations. A 
current list of the contents shall be attached to 
the exterior of the emergency drug kit. Storage 
and use of the emergency drug kit shall comply 
with the following: 

(1) Storage of the emergency drug kit shall be 
in a secure, readily available location un- 
der the supervision of the nursing staff 
authorized persons. 

(2) After the emergency drug kit is used and 
its seal broken, the pharmacy must be 
notified in accordance with written poli- 
cies and procedures of the institution. 
The kit shall be replenished by a rasp on 
siblo an authorized person in accordance 
with written policies and procedures of the 



1481 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



PROPOSED RULES 



institution. Drugs and other articles used 
in the restocking and resealing of the 
emergency drug kit shall be under the 
supervision of the pharmacist. The 
emergency drug kits shall be checked by 
a responsibl e an authorized person in ac- 
cordance with written policies and proce- 
dures of the institution. 

(3) The supplier shall indicate on the emer- 
gency drug kit in a clearly visible place an 
expiration date which in no case shall be 
later than the date of the first item to ex- 
pire. 

(4) Items used from the emergency drug kit 
shall be entered on the patient's clinical 
record according to the standard proce- 
dure of the institution. 

(e) Kite with Controlled Substances. For the 
purpose of complying with state and federal law, 
emergency drugs that are controlled substances 
must be stored in a separate emergency kit. Such 
controlled substances emergency drug kit shall 
meet all of the requirements of this Rule applying 
to emergency drug kits and, in addition, be in 
compliance with the rules and regulations relative 
to controlled substances emergency drug kits. 

Statutory Authority G.S. 90-85.6; 90-85.21. 

SECTION .1500 - ADMISSION 
REQUIREMENTS: EXAMINATIONS 

.1503 EXPERIENCE IN PHARMACY 

(a) An applicant for license must show that he 
has received 1500 hours of practical experience 
under the supervision of a licensed pharmacist 
which has been acquired after the satisfactory 
completion of two years of college work, rve- 
moro than 640 hours e£ thte experience may h% 
acquired concurrent with pharmacy college ate 
tendanc e m clinical pharmacy programs &f dom 
onstration proj e cts which havo boon appro v e d 
by the Board. At least 1000 hours of this expe- 
rience must be acquired in a community or hos- 
pital pharmacy or other place approved by the 
Board in the manner prescribed in (b) of this 
Rule. No period of experience of less than two 
consecutive weeks of not less than 30 hours per 
week, or more than 50 hours per week of actual 
hours worked with a maximum of ten hours per 
day, will be credited toward this requirement. 
Experience obtained in clinical programs through 
schools approved by the Board or concurrent 
with pharmacy school attendance is acceptable 
only for actual hours certified bv the school. 
Experience obtained in government, the phar- 
maceutical industry' or other nontraditional lo- 



cations is acceptable up_ to a maximum of 500 
hours. 

(b) All practical pharmacy experience to be 
acceptable must be acquired under the general 
conditions approved by the Board as follows: 

(1) All practical pharmacy experience must 
be validated through registration in the 
internship program administered by the 
Board. 

(2) Persons working under the supervision of 
registered pharmacists and expecting to 
qualify for the registered pharmacist ex- 
amination must notify the Board within 
five days of the beginning and the ending 
of such employment. 

(3) The Board shall not allow credit for claims 
of practical experience required under the 
pharmacy laws, unless such claims can be 
corroborated by records on file in the 
Board's office showing the beginning and 
ending of the practical experience claimed 
as supplied by the applicant during this 
training period. 

(4) Practical experience shall be credited only 
when it has been obtained in a location 
holding a pharmacy permit, or a location 
approved by the Board for that purpose. 

(c) The pharmacist intern, or student, and the 
pharmacist preceptor, or supervising pharmacist, 
shall at all times comply with the Board's rules 
and the laws governing the practice of pharmacy 
and the distribution of drugs. Failure of the 
pharmacist intern to do so is grounds to disqual- 
ify the period of experience from counting toward 
the minimum requirements. A pharmacist 
preceptor who causes or permits a pharmacist 
intern to violate the Board's rules or the laws 
governing the practice of pharmacy and the dis- 
tribution of drugs forfeits his right to supervise 
such experience for a period of time determined 
by the Board. 

(d) The Board may accept training in phar- 
macy gained in another state pursuant to 
internship registration in this or another state if 
the Board is satisfied that such training is equiv- 
alent. 



Statutory Authority G.S. 
90-85.38. 



90-85.14; 90-85.15; 



SECTION .1800 - PRESCRIPTIONS 

.1806 TRANSFER OF PRESCRIPTION 
INFORMATION 

(a) The transfer of original prescription infor- 
mation for the purpose of refill dispensing is 
permissible between pharmacies subject to the 
following requirements: 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



1482 



PROPOSED RULES 



(1) the transfer is communicated directly be- 
tween two pharmacists and not by only 
one pharmacist gaining access to an in- 
formation file containing data for several 
locations, unless all locations accessed are 
under common ownership or accessed 
pursuant to contractual agreement of the 
pharmacies; 

(2) the transferring pharmacist invalidates the 
prescription and any remaining refills by 
marking the word "void" or its equivalent 
on the face of the prescription; 

(3) the transferring pharmacist records the 
name and address of the pharmacy to 
which it was transferred and the name of 
the pharmacist receiving the prescription 
information on the reverse of the invali- 
dated prescription; 

(4) the transferring pharmacist records the 
date of the transfer and the name of the 
pharmacist transferring the information. 

(b) The pharmacist receiving the transferred 
prescription information shall reduce to writing 
the following: 

(1) The word "transfer" on the face of the 
transferred prescription. 

(2) All information required to be on a pre- 
scription, including: 

(A) Date of issuance of original pre- 
scription; 

( B ) Number of refills authorized on original 
prescription; 

(C) Date and time of transfer; 

(D) Number of valid refills remaining and 
date of last refill; 

(E) Pharmacy's name, address and original 
prescription number from which the pre- 
scription information was transferred; 

(F) Name of transferring pharmacist; and 

(G) Manufacturer or brand of drug dis- 
pensed. 

(c) The transferred prescription, as well as the 
original, must be maintained for a period of three 
years from the date of last refill. 

(d) Dispensing is permitted only within the 
original authorization for refills and no dispens- 
ing on such transfer can occur beyond that au- 
thorized on the original prescription. Any 
dispensing beyond that originally authorized or 
one year, whichever is less, can occur only on a 
new prescription. 

(e) The requirements of (a) and (b) of this Rule 
may be facilitated by use of a computer or data 
system without reference to an original pre- 
scription document. The system must be able 
to identify transferred prescriptions and prevent 
subsequent prescription refills at that pharmacy. 



(f) This Rule applies to the transfer of pre- 
scriptions issued by prescribers in other states, 
provided that the pharmacist receiving the pre- 
scription is reasonably satisfied that a viable 
physician-patient relationship exists and dispens- 
ing the drug is in the patient's best interests. 

(g) All records pertinent to this Rule shall be 
readily retrievable. 

Statutory Authority G.S. 90-85. 6 (a); 90-85.32. 

SECTION .2500 - MISCELLANEOUS 
PROVISIONS 

.2504 PATIENT COUNSELING 

(a) "Patient Counseling" shall mean the effec- 



tive communication by the pharmacist of infor- 
mation, as defined in this Rule, to the patient or 
caregiver in order to improve therapeutic out- 
comes by maximizing proper use of prescription 
medications and devices. Specific areas of patient 
counseling shall include, but are not limited to: 
(1) name and description of the medication; 
route, dosage, administration, and conti- 
nuity of therapy; 

special directions for use by the patient as 
deemed necessary' by the pharmacist: 
side effects or interactions that mav be 



Lii 
(41 



encountered, which may interfere with the 



proper use of the medication or device as 
was intended by the prescriber. and the 
action required if they occur. 

(b) In order to counsel patients effectively, the 
pharmacist shall make a reasonable effort to ob- 
tain, record, and maintain, if significant, patient 
information, including, but not limited to: 

( 1 ) name, address, telephone number; 

(2) date of birth (age), gender; 

(3) medical history: 

(A) Disease state(s), 

(B) Allergies /drug reactions, 

(C) Current list of medications and devices; 

(4) pharmacist comments. 

(c) A pharmacist shall provide patient coun- 
seling as follows: 

I 1 i a pharmacist shall counsel the patient or 
caregiver "face to face" when possible or 
appropriate. If this is not possible, a 
pharmacist shall make a reasonable effort 
to counsel the patient or eareizn er: 

(2) alternative forms of patient information 
mav be used to supplement patient coun- 
seling; 

(3) patient counseling, as described in this 
Rule, shall also be required for outpatient 
and discharge patients of hospitals and 
institutions; 



1483 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



PROPOSED RULES 



(4) patient counseling, as described in this 
Rule, shall not be required for inpatients 
of a hospital or institution where a nurse 
or other licensed health care professional 
is authorized to administer the 
medication(s); and 

(5) the pharmacist shall maintain appropriate 
patient-oriented reference materials (i.e. 
L'SP-Dl, Facts and Comparisons, Patient 
Drug Facts, etc.) for use by the patient 
upon request. 

(d) Pharmacies that distribute prescription 
medication by mail, and where the practitioner- 
phaxmacist-patient relationship does not exist, 
shall provide counseling services for recipients of 
such medication, which shall include: 

(1 ) use of LSP Pictogram auxiliary labels on 
all mailed prescriptions; 

(2) contracting with local pharmacists to pro- 
vide patient counseling. The local 



pharmacists shall be sufficient in number 
and demographic distribution to provide 
available and adequate patient counseling. 
The contract between the pharmacy and 
the local pharmacist shall contain pro- 
visions for: 



(A) patient counseling, with an exchange 
of patient medication records between the 
pharmacy and the local pharmacist; 

(B) emergency or immediate need pre- 
scription services through the local 
pharmacist; 

(C) outreach efforts through the local 
pharmacist for homebound recipients; 

(D) notification to recipients by the phar- 
macy of the name, address, and telephone 
number of the local pharmacist and the 
patient counseling services provided; 

(E) furnishings by the pharmacy to the local 
pharmacist of publicity materials describ- 
ing the patient counseling services pro- 
vided; 

(F) payment of a fee from the pharmacy to 
the local pharmacist for providing patient 
counseling services; 

(G) provisions for fair dealing. 

Statutory Authority G.S. 90-85.6; 90-85.32; P.L. 
101-508 §4401 (a)(3). 

TITLE 24 - INDEPENDENT AGENCIES 

i V otice is hereby given in accordance with G.S. 
150B-21.2 that the North Carolina Housing Fi- 
nance Agency intends to adopt rule(s) cited as 24 
NCAC IN .0201 - .0204. 



1 he proposed effective date of this action is April 
1, 1992. 

1 he public hearing will be conducted at 10:00 
a.m. on January 17, 1992 at the North Carolina 
Housing Finance Agency, 3300 Drake Circle, 
Suite 200, Raleigh, NC 27611. 

J\eason for Proposed Action: To implement the 
reverse mortgage counseling requirements estab- 
lished by the Reverse Mortgage Act, General 
Statute Chapter 53, Article 21. 

Comment Procedures: Written comments must 
be submitted to the APA Coordinator by February 
J, 1992. Oral comments may be presented at the 
hearing. 



The local T? 

77~~ ~ „u„_ jL" 



ditor's Note: Rule .0202 has been filed as a 
temporary rule effective November 28, 1991 for a 
period of 180 days to expire on May 26, 1992. 

CHAPTER 1 - N.C. HOUSING FINANCE 
AGENCY 

SUBCHAPTER IN - HOUSING COUNSEUING 

SECTION .0100 - RESERVED FOR FUTURE 
CODIFICATION 

SECTION .0200 - TRAINING FOR REVERSE 
MORTGAGE COUNSEUORS 

.0201 PURPOSE 

The purpose of this Section is to help ensure 
that individuals providing counseling required 
under the state's Reverse Mortgage Act (General 
Statutes Chapter 53, Article 21) have received 
training that permits them to effectively fulfill 
their responsibilities. 



Statutory Authority 
122A-5A. 



G.S. 53-269; 122A-5; 



.0202 STANDARDS FOR COUNSELOR 
TRAINING 

(a) All borrowers applying for a reverse mort- 
gage must receive counseling from an organiza- 
tion with staff that has completed a training 
program approved by the agency. 

(b) The agency will periodically, but no less 
than once per year, publish a schedule of training 
programs that meet the standard for counselor 
training established in this Rule. The schedule 
may be obtained from the North Carolina 
Housing Finance Agency, 3300 Drake Circle, 



Suite 200. Raleigh, North Carolina 27607 or by 
calling the agency at (919) 781-61 15. 



6:79 NORTH CAROLINA REGISTER January 2, 1992 



14S4 



PROPOSED RULES 



(c) Training programs approved by the agency 
may be offered by: 

( 1) The agency directly; 



(2) The agency in cooperation with the North 
Carolina Division of Aging or other state 
agencies; 

(3) The U.S. Department of Mousing and 
Urban Development (HUD); or 

(4) A third party contractor approved bv the 
agency. 

(d) The curriculum of approved training pro- 
grams must at least address, but is not limited to, 



the following issues: 



(1) The financial implications of entering into 
a reverse mortgage; 

(2) The consequences of the reverse mortgage 
for the borrower's taxes, estate, and eligi- 
bility for assistance under federal and state 
programs; 

(3) Other home equity conversion options, in 
addition to reverse mortgages, that may 
be available to borrowers including sale- 
lease back financing, low interest and de- 
ferred payment loans, and property tax 
deferral; 

(4) Options, other than home equity conver- 
sion, that are available to the borrower. 



including other housing alternatives and 
social service, health and financial 
options: and 
(5) Other information the agency may require. 



Statutory 
I22A-5.1. 



Authority G.S. 53-269; 122A-5; 



.0203 NOTIFICATION OF THE 

COMMISSIONER OF BANKS 

The agency will provide the Commissioner of 
Banks with the names of all persons that have 
satisfied the counselor training requirements 
identified in Rule .0202(d) of this Section. 



Statutory A uthority 
122A-5.1. 



G.S. 53-269; I22A-5; 



.0204 FEES 

(a) The agency may charge reasonable fees to 
cover the costs of developing and implementing 
training programs. The fees may include, but are 
not limited to. registration fees for training pro- 
grams and charges for the cost of training mate- 
rials. 

(b) The fees to be charged will be identified in 
training announcements and materials. 



Statutory A uthority 
122 A- 5.1. 



G.S. 53-269; 122A-5; 



TITLE 25 - OFFICE OF STATE 
PERSONNEL 

i V otice is hereby given in accordance with G.S. 
I50B-21.2 that the Office ofi State Personnel in- 
tends to amend rule(s) cited as 25 NCAC ID 
.0611. 

1 he proposed effective date of this action is April 
1, 1992. 

1 he public hearing will be conducted at 9:00 
a.m. on February 4, 1992 at the Personnel Devel- 
opment Center, 101 IV. Peace Street, Raleigh, 
North Carolina. 

lxeason for Proposed Action: To provide guid- 
ance and clarification to agencies in implementing 
the Reallocation Policy, this proposed amendment 
indicates that the amount of increase is to be de- 
termined consistent with the employee's related 
experience, training, performance increases, work 
unit equity & other related considerations. 



Co 



omment Procedures: Interested persons may 
present statements either orally or in writing at the 
Public Hearing or in writing prior to the hearing 
by mail addressed to Barbara Coward. Office of 
State Personnel, 116 W. Jones Street, Raleigh, 
North Carolina 27603. 

CHAPTER 1 - OFFICE OF STATE PERSONNEL 

SUBCHAPTER ID - COMPENSATION 

SECTION .0600 - REALLOCATION 

.0611 REALLOCATION/SALARY RATE 

(a) When an employee's position is assigned to 
a higher grade as a result of reallocation, subject 
to the availability of funds and satisfactory em- 
ployee performance, salary increases, not to ex- 
ceed the maximum of the range, may be given in 
accordance with the following: 

( 1 ) Salaries at the hiring rate shall be increased 
to the new hiring rate. 

(2) Salaries at the minimum rate shall be in- 
creased to the minimum rate of the new 
range, and may be increased further in 
accordance with Paragraph (3) of this 
Rule. 

(3) Salaries within the range may remain the 
same; or if funds are available and where 
appropriate, individual salary increases 
may be considered, baaed e» the employ 
ee^s directly related training a«4 e xp e ri 
ewee which oxec - odo the minimum 



1485 



6: 1 9 NOR TH CA R OLINA REGIS TER January 2,1992 



PROPOSED RULES 



qualifications fof the position, but not to 
exceed five percent for each salary grade 
provided by the reallocation. The 
amount of increase shall be determined 
consistent with the employee's related 
training and experience and take into 
consideration prior performance increases, 
work unit equity, and any other salary re- 
lated considerations. Salary equity within 
the work trnit aftd other management 
needs must he given consideration when 
maldng such requests. 

(b) However, if an employee has been reduced 
to a lower salary grade through demotion, reas- 
signment, reallocation or salary range revision, 
but without a corresponding reduction in salary, 
and the employee's position is later assigned to a 
higher grade as a result of reallocation, the num- 
ber of grades in the original reduction shall be 
considered to have been compensated and shall 
not be considered in Paragraph (a) of this Rule 
salary setting procedure. (Example: If an em- 
ployee is demoted with no change in salary and 
reallocated back to the same level, the salary shall 
remain unchanged and treated as if the demotion 
had not occurred; or if reallocated back to a level 
higher than before the demotion, the difference 
in the grade before the demotion and the new 
higher grade will be the basis for determining the 
reallocation increase.) 

(c) If the reduction in grade occurred as much 
as 24 months previously, the agency may give 
consideration to granting a salary increase within 
the provisions of this policy. Factors to be con- 
sidered are the nature of the change in duties and 
responsibilities and the need to maintain equity 
of salaries within the work unit. 

(d) Only with the prior approval of the State 
Personnel Director and in extreme circumstances 
relating to critical positions and well-documented 
labor market conditions will salary increases be 
considered which equate to more than five per- 
cent for each grade provided by the reallocation. 
Personnel forms must include the justification. 

(e) If the employee is to receive a performance 
salary increase on the same day as the reallo- 
cation, the performance increase shall be given 
before a reallocation increase is considered. 

(f) When an employee's position is assigned to 
a lower grade, one of the following options will 
be implemented: 



(1) When reduction in level of the position 
results from management's removal of 
duties and responsibilities from the em- 
ployee because of change in demonstrated 
motivation, capability, acceptance of re- 
sponsibility, or lack of performance, the 
effect is the same as a demotion and the 
salary must be reduced at least to the 
maximum as required by the policy on 
demotion. 

(2) When reduction in level of the position 
results from position redesign because of 
management decisions on program 
changes, reorganization, or other manage- 
ment needs not associated with the em- 
ployee's demonstrated motivation, 
capability, acceptance of responsibility or 
lack of performance, the salary of the em- 
ployee may remain above the new maxi- 
mum as long as the employee remains in 
the same classification or is promoted to 
a higher level position. No further in- 
creases, other than legislative increases, 
may be granted as long as the salary re- 
mains above the maximum. 

(3) When reduction in level of the position 
results from a change in the labor market 
or some other reason not related to 
change in the duties and responsibilities 
of the position, though the position must 
be reallocated to the approved classifica- 
tion and grade, management may elect to 
maintain the employee's current classi- 
fication and grade by working the em- 
ployee against the lower level position, so 
long as the employee continues to occupy 
the same position or is in the same classi- 
fication. 

(4) Once the position is vacated, it shall be 
filled at the lower level. 

(g) It is a management responsibility to avoid 
creation of salary inequities among employees. 
Each case must be evaluated to determine which 
of the salary administration alternatives is most 
appropriate, based on the circumstances as doc- 
umented to the Office of State Personnel, on ap- 
propriate forms, by the employing agency. 

(h) When an employee's position is assigned 
to the same grade level, the employee's salary 
shall remain unchanged. 

Statutory Authority G.S. 126-4. 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



I486 



LIST OF RULES CODIFIED 



1 he List of Rules Codified is a listing of rules that were filed with OAH in the month indicated. 


Key: 




Citation 


= Title, Chapter, Subchapter and Rule(s) 


AD 


= Adopt 


AM 


= Amend 


RP 


= Repeal 


With Chgs 


= Final text differs from proposed text 


Eff Date 


= Date rule becomes effective 


Temp. Expires 


= Rule was filed as a temporary rule and expires on this date 



NORTH CAROLINA ADMINISTRATIVE CODE 
NOVEMBER 1991 



TITLE DEPARTMENT 



1 


Administration 


2 


Asriculture 


4 


Economic and Communit\ 




Development 


7 


Cultural Resources 


10 


Human Resources 


!i 


Insurance 


12 


Justice 


15A 


Environment, Health, 




and Natural Resources 



TITLE DEPARTMENT 

21 Occupational Licensing Boards 

14 - Cosmetic Art Examiners 
19 - Electrolysis Examiners 
Licensing of Geologists 
Hearing Aid Dealers and Fitters 
28 - Landscape Architects 
56 - Professional Engineers and Land Surveyc 
58 - Real Estate Commission 

24 Independent Agencies 
1 - Housing Finance 

25 State Personnel 



21 

79 



Citation 


AD 


AM 


RP 


With 
Chgs 


tff. 
Date 


Temp. 
Expires 


1 NCAC 30F .0101 










01 01 92 




.0103 








• 


01 01 92 




.0202 










01 01 92 




.0 301 








• 


01 01 92 




.0302 - .0303 










01 01 92 




.0305 










01 01 92 




.0401 










01 01 92 




.0403 








• 


01 01 92 




2 NCAC 9B .0016 




• 




• 


04 01 92 




9C .0701 








• 


04 01 92 




.0702 










04 01 92 




.0703 








• 


04 01 92 




.0704 










04 01 92 




4SB .0114 -.0115 




• 






01 01 92 





148' 



6: 1 9 AOR TH CAROLISA REGIS TER January 2, 1 992 



LIST OF RULES CODIFIED 



Citation 


AD 


AM 


RP 


With 
Chgs 


EfT. 
Date 


Temp. 
Expires 


2 NCAC 48B .0121 




• 






01 01 92 




.0122 




• 




• 


01 01 92 




.0125 


• 






• 


01 01 92 




.0126 - .0130 


• 








01 01 92 




.0131 


• 






• 


01 01 92 




.0132 


• 








01 01 92 




48D .0006 




• 






01 01 92 




4 NCAC 6C .0101 




• 






01 01 92 




.0103 






• 




01 01,92 




.0210 






• 




01 01 92 




.0302 










01 01 92 




.0404 










01 01 92 




16A .0101 










12 06 91 




16D .0202 










120691 




7 NCAC 2E .0202 










01 01 92 




10 NCAC 3J .2905 








• 


01 01 92 




14S .0102 






• 




01 01 92 




.0103 








• 


01 01 92 




19F .0104 










01 01 92 




.0108 






• 




01 01 92 




.0402 










01 01 92 




.0504 










01 01 92 




.0508 






• 




01 01 92 




26H .0108 


• 






• 


01 01 92 




50 B .0208 


• 








01 01 92 




50C .0201 - .0203 






• 




01 01 92 




11 NCAC 11C .0131 


• 








01 01 92 


06 29 92 


12 NCAC 9B .0224 




• 






01 01 92 




10B .0201 


• 








01 01 92 




.0204 










01 01 92 




.0205 








• 


01 01 92 




.0206 


• 








01 01 92 




.0301 










01 01 92 




.0302 - .0303 








• 


01 01 92 




.0305 










01 01 92 




.0307 










01 01 92 




.0405 - .0406 










01 01 92 




.0408 










01 01 92 





6:19 NORTH CAROLINA REGISTER January 2, 1992 



1488 



LIST OF RULES CODIFIED 



Citation 


AD 


AM 


RP 


With 
Chgs 


Eff. 
Date 


Temp. 
Expires 


12 NCAC JOB .0505 • .0509 










01 01 92 




.0601 








• 


01 01 92 




.0603 - .0607 










01.01 92 




.0703 - .0705 










01 01 92 




.0803 










01 01 92 




.0901 








• 


01 01 92 




.0905 








• 


01 01 92 




.0906 










01 01 92 




.0408 








• 


01 01 92 




.0909 










01 01 92 




.0910 


• 








01 01 92 




.1001 - .1006 










01 01 92 




.1101 










01 01 92 




.1103 - .1105 










01 01 92 




.1202 










01 01 92 




.1204 - .1205 










01 01 92 




.2104 








• 


01 01 92 




15A NCAC 2B .0309 








• 


01 01 92 




""J .0402 










01 01 92 




10B .0106 










01 01 92 




.0401 - .0402 










01 01 92 




.0403 - .0404 








• 


01 01 92 




.0405 - .0406 










01 01 92 




.0409 


• 








01 01 92 




10H .0102 










01 01 92 




13B .1501 










12 06 91 




.1503 










12 06 91 




.1508 










12 06 91 




.1512 










12 06 91 




15 Transferred and 
Recodified to 
18 NCAC 8 










11 27 91 




19A .0202 








• 


01 01 92 




19H .0601 










01 01 92 




.0701 










01 01 92 




.0901 








• 


01 01 92 




.0910 










12 06 91 




.1202 










01 01 92 




21 C .0303 










12 06 91 





1489 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



LIST OF RULES CODIFIED 



Citation 


AD 


AM 


RP 


With 
Chgs 


EfT. 
Date 


Temp. 
Expires 


15A NCAC 21C .0307 










12 06,-91 




21D .0107 










12 06,91 




.0201 - .0202 










12/06/91 




.0304 










120691 




.0402 










12/06/91 




.0602 










12 06 91 




.0902 










12 06 91 




.0911 










12 06 91 




.1001 










12 0691 




21 NCAC 14A .0104 










12 0691 




14G .0003 










01 01 92 




19 .0101 


• 






• 


01 01 92 




.0201 


• 








01 01 92 




.0201 - .0202 


• 








12 01 91 


02 01 92 


21 .0106 




• 






01 01.92 




.0107 




• 




• 


01 01 92 




.1001 


• 






• 


01 01 92 




.1002 


• 








01 01 92 




22B .0603 


• 






• 


01 01 92 




22C .0101 






• 




01 01 92 




.0903 






• 




01 01 92 




22 F .0001 










01 01 92 




.0003 








• 


01 01 92 




.0008 










01 01 92 




.0013 - .0014 








• 


01/01 92 




221 .0006 










01 01 92 




22J .0015 








• 


01,01 92 




22L .0001 








• 


01 01 92 




.0002 - .0011 










01/01 92 




.0012 








• 


01 01 92 




.0013 - .0015 










01 01 92 




28 .0107 










01 01 92 




56 .0901 








• 


01 01 92 




.1603 










01 01 92 




.1604 








• 


01 01 92 




58D .0102 










01 01 92 




.0203 










01 01 92 




.0206 










01 01 92 





6:19 NORTH CAROLINA REGISTER January 2, 1992 



1490 



LIST OF RULES CODIFIED 



Citation 


AD 


AM 


RP 


With 
Chgs 


Efr. 

Date 


Temp. 
Expires 


21 NCAC 5SD .0:i() 


• 






• 


01 01 92 




24 NCAC IN .0202 


• 








11 28 91 




25 NCAC ID .2101 - .2104 






• 




01 01 92 




.2105 




• 




• 


01 01 92 




.2106 - .2108 










01 01 92 




1L .0302 








• 


01 01 92 




.0303 










01 01 92 




.0304 








• 


01 01 92 




.0305 










01 01 92 




.0306 








• 


01 01 92 




.0307 










01 01 92 





1491 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



RRC OBJECTIONS 



1 he Rules Review Commission (RRC) objected to the following rules in accordance with G.S. 
J43B-30.2(cJ. State agencies are required to respond to RRC as provided in G.S. 143B-30.2(d). 

1 emporary Rules are noted by "*". These Rules have already gone into effect. 



ADMINISTRATION 

State Construction 

/ NCAC30F .0101 - Authority RRC Objection lOj 17191 

1 NCAC 30F .0103 - Definitions RRC Objection 10/17/91 

1 NCA C 30F .0202 - Pre-Bid Conferences and Site Reviews RRC Objection 10/17/91 

1 NCAC 30F .0301 - Definitions RRC Objection 10/17/91 

1 NCA C 30F .0302 - Overall Job Performance RRC Objection 10/17/91 

1 NCAC30F .0303 - Interim Contractor Evaluation RRC Objection 10/17/91 

1 NCAC 30F .0305 - Report Compilation RRC Objection 10/17/91 

J NCAC 30F .0401 - Post-Occupancy Evaluation RRC Objection 10/17/91 

1 NCAC30F .0403 - Appeals of Assigned Eval or Disqual from Bidding RRC Objection 10/17/91 

AGRICULTURE 

Plant Industry 

2 NCAC 9M .0001 - Manufacturer Registration RRC Objection 10/17/91 
Agency Revised Rule Obj. Removed 10/17/91 

2 NCAC 48A .1701 - Definitions RRC Objection 10/17/91 

Agency Revised Rule Obj. Removed 10/17/91 

2 NCAC48A .1702 - Noxious Weeds RRC Objection 10/17/91 

Agency Revised Rule Obj. Removed 10/17/91 

2 NCAC48A .1703 - Regulated Areas RRC Objection 10/17/91 

Agency Revised Rule Obj. Removed 10/17/91 

2 NCAC48A .1704 - Regulated Articles RRC Objection 10/17/91 

Agency Revised Rule Obj. Removed 10/17/91 

2 NCAC48E .0101 - Definitions RRC Objection 10/17/91 

Agency Revised Rule RRC Objection 10/17/91 

ECONOMIC AND COMMUNITY DEVELOPMENT 

Credit Union Division 



4 NCAC 6C .0311 
4 NCAC 6C .0401 
4 NCAC 6C .0402 
4 NCAC 6C .0403 
4 NCAC 6C .1301 



Surety Bond and Insurance Coverage 
Delinquent Loans and Loan Losses 
Charge-Off of Uncollectible Loans 
Real Estate Loans 
Liquidity Reserves 



Employment and Training 

* 4 NCAC 20B .0903 - Allocation of Grants 
No Response from Agency 

No Response from Agency 

* 4 NCAC 20B .0905 - Eligibility 
No Response from Agency 



RRC Objection 
RRC Objection 
RRC Objection 
RRC Objection 
RRC Objection 



11/21/91 
11/21/91 
11/21/91 
11/21/91 
11/21/91 



A RRC Objection 



A RRC Objection 



8/22/91 
9/19/91 
10/17/91 
8/22/91 
9/19/91 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



1492 



RRC OBJECTIONS 



No Response from Agency 

* 4 NCAC 20B .0907 - Cost Limitations! Categories 
No Response from Agency 

No Response from Agency 

* 4 NCAC 20B .0908 - Reporting 
No Response from Agency 

No Response from Agency 

* 4 NCAC 20 B .0909 - Performance Standards 
No Response from Agency 

No Response from Agency 

* 4 NCAC 20B .091 1 - Fund Availability 
No Response from Agency 

No Response from Agency 

EDUCATION 

Elementary and Secondary Education 

16 NCAC 6B .0001 - School Bus Drivers 

Agency Revised Rule 
16 NCAC 6D .0103 - Graduation Requirements 

No Response from Agency 

* 16 NCAC 6E .0301 - Driver Training 
Agency Responded 

Agency Revised Rule 

ENVIRONMENT, HEALTH, AND NATURAL RESOURCES 

Adult Health 

15 A NCAC 16 A .0804 - Financial Eligibility 

No Response from Agency 

Agency Responded 

No Response from Agency 
15A NCAC 16 A .0806 - Billing the HIV Health Services Program 

No Response from Agency 

Agency Responded 

No Response from Agency 

Coastal Management 



A RRC Objection 



A RRC Objection 



A RRC Objection 



A RRC Objection 



10/17/91 
8/22/91 
9/19/91 

10/17/91 
8/22/91 
9/19/91 

10/17/91 
8/22/91 
9/19/91 

10/17/91 
8/22/91 
9/19/91 

10/17/91 



A RRC Objection 
Obj. Removed 
A RRC Objection 

A RRC Objection 
Obj. Removed 



9/19/91 
10/17/91 

9/19/91 
10/17/91 

8/22/91 

9/19/91 
10/17/91 



A RRC Objection 

No Action 
No Action 
A RRC Objection 

No Action 
No Action 



1/18/91 
2/25/91 
3/21/91 
4/18/91 
1/18/91 
2/25/91 
3/21/91 
4/18/91 



15.4 NCAC 7 J .0301 - Who is Entitled to a Contested Case Hearing 
No Response from Agency - Rule Returned to Agency 

15A NCAC 7 J .0302 - Petition for Contested Case Hearing 
No Response from Agency - Rule Returned to Agency 

15 A NCAC 7 J .0402 - Criteria for Grant or Denial of Permit Applications 

15A NCAC 7M .0201 - Declaration of General Policy 

15A NCAC 7M .0202 - Policy Statements 

15A NCAC 7M .0303 - Policy Statements 

15.4 NCAC 7M .0403 - Policy Statements 

15.4 NCAC 7M .0901 - Declaration of General Policy 

Environmental Management 

15 A NCAC 2D .1102 - Applicability 



A RRC Objection 
A RRC Objection 



RRC 
RRC 
RRC 
RRC 
RRC 
RRC 



Objection 
Objection 
Objection 
Objection 
Objection 
Objection 



9/19/91 
10/17/91 

9/19/91 
10/17/91 
10/17/91 
10/17/91 
10/17/91 
10/17/91 
10/17/91 
10 17 ''I 



A RRC Objection 8/22/91 
No Action 9/19/91 



1493 



6: 1 9 NOR TH CAROLINA REGIS TER January 2, 1 992 



RRC OBJECTIONS 



Agency Revised Rule 
ISA NCAC 2D .1208 - Operator Training Requirements 

Agency Withdrew Rule 

Forest Resources 

15A NCAC 9C .1007 - America the Beautiful Grant Program 
Agency Revised Rule 

Health: Epidemiology 

ISA NCAC 19 A .0202 - Control Measures - HIV 
ISA NCAC I9H .0702 - Research Requests 

Wildlife 

ISA NCAC 10 A .1001 - Particular Offenses 
Agency Revised Rule 

HUMAN RESOURCES 

Aging 

10 NCAC 22M .0101 - Scope of Care Management 

Agency Revised Rule 
10 NCAC 22M .0/02 - Definitions 

Agency Revised Rule 
10 NCAC 22M .0103 - Target Population 

Agency Revised Rule 
10 NCAC 22M .0203 - Assessment and Reassessment 

Agency Revised Rule 
10 NCAC 22M .0204 - Care Planning 

Agency Revised Rule 
10 NCAC 22N .0101 - Definitions for Confidentiality of Client Data 

Agency Revised Rule 
10 NCAC 22N .0205 - Security of Records 

Agency Revised Rule 
10 NCAC 22N .0208 - Client Access to Records 

Agency Revised Rule 

Children's Services 

10 NCAC 411 .0304 - Receiving Info: Initialing Prompt Invest of Rpls 
Agency Revised Rule 

10 NCAC 411 .0406 - Responsibility for Training of Team Members 
Pending Correction 
Agency Re\>ised Rule 

Economic Opportunity 

* 10 NCAC 5 IF .0102 - Definitions 
No Response from Agency 
Agency Responded 

* 10 NCAC S IF .0202 - Ineligible Activities 
No Response from Agency 



Obj. Removed 10117191 

ARRC Objection 8/22/91 

No Action 9/19/91 

10/17/91 



ARRC Objection 9/19/91 
Obj. Removed 9/19/91 



RRC Objection 10/17/91 
RRC Objection 11/21/91 



ARRC Objection 9/19/91 
Obj. Removed 9/19/91 



ARRC Objection 
Obj. Removed 
ARRC Objection 
Obj. Removed 
ARRC Objection 
Obj. Removed 
ARRC Objection 
Obj. Removed 
ARRC Objection 
Obj. Removed 
ARRC Objection 
Obj. Removed 
ARRC Objection 
Obj. Removed 
ARRC Objection 
Obj. Removed 



9/19/91 
10/17/91 

9/19/91 
10/17/91 

9/19/91 
10/17/91 

9/19/91 
10/17/9/ 

9/19/91 
10/17/9/ 

9/19/91 
10/17/91 

9/19/91 
10/17/91 

9/19/91 
10/17/91 



RRC Objection 10/17/91 
Obj. Removed 10/17/91 
ARRC Objection 7/18/91 
8/22/91 
Obj. Removed 10/17/91 



ARRC Objection 8/22/91 

9/19/91 

No Action 10/17/91 

ARRC Objection 8/22/91 

9/19/91 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



1494 



RRC OBJECTIONS 



Agency Responded 

* 10 NCAC51F .0402 - Eligibility Requirements 
No Response from Agency 

Agency Responded 

* 10 NCAC51F .050/ - Grant Agreement 
No Response from Agency 

Agency Responded 

Facility Services 

JO NCAC 3C .1927 - Brain Injury Extended Care Phys Services 

Agency Revised Rule 
10 NCAC3J .2905 - Personal Hygiene Items 
10 NCAC3J .3202 - Health Screening Form 

Agency Revised Rule 
10 NCAC 3 J .3926 - Health Screening Form 

Agency Revised Rule 
10 NCAC3U .0604 - General Safety Requirements 

Agency Revised Rules 
10 NCAC 3 U .0804 - Infectious and Contagious Diseases 

Agency Revised Rules 

Individual and Family Support 

10 NCAC42H .0908 - Competency Requirements 

Agency Revised Rule 
10 NCAC 42H .0909 - Time Frames for Completing Competency Req. 

Agency Revised Rule 
10 NCAC 4211 .0911 - Selection of Aides 

Agency Revised Rule 
10 NCAC 42H .09/3 - Quality Assurance Requirements 

Agency Revised Rule 

Medical Assistance 



No Action 

A RRC Objection 

No Action 

A RRC Objection 

No Action 



RRC Objection 
Obj. Removed 
RRC Objection 
RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 
A RRC Objection 
Obj. Removed 
A RRC Objection 
Obj. Removed 



RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 



10/17/91 
8/22/91 
9/19/91 

10/17/91 
8/22/91 
9/19/91 

10/17/91 



10/17/91 

10/17/91 
10/17191 
10/17191 
10/17,91 
10 17 91 
10,17,91 
8/22/91 
9/19,91 
8 ',22/91 
9/19/91 



10,17 91 
10/17/91 
10/17191 
10/17:91 
10 17 91 
1017 91 
10,17.9/ 
10/17/91 



10 NCAC 26H .0/08 - Reimbursement Methods/ State-Operated Facilities RRC Objection 10 17 91 

10 NCAC 50B .0305 - Deprivation A RRC Objection 8/22/91 

Agency Revised Rule Obj. Removed 8/22/91 

Mental Health: General 



10 NCAC 14K .0103 - Definitions 

Agency Revised Rule 
10 NCAC 14K .0320 - Incident Reporting 

Agency Revised Rule 
10 NCAC 14K .0337 - Emergency Care Permission 

Agency Revised Rule 
10 NCAC 14K .0351 - Administration of Medication 

Agency Revised Rule 
10 NCAC 14M .0206 - Day Services 

Agency Revised Rule 
10 NCAC 14M .0209 - Community Resources 

Agency Revised Rule 
10 NCAC 14M .0409 - Community Resources 

Agency Revised Rule 



A RRC Objection 9/19/91 

Obj. Removed 9/19 91 

A RRC Objection 9/19/91 

Obj. Removed 9/19 91 

A RRC Objection 9/19/91 

Obj. Removed 9/19, 91 

A RRC Objection 9/19.91 

Obj. Removed 9/19, 91 

A RRC Objection 9,19,91 

Obj. Removed 9/99/ 

A RRC Objection 9/19/91 

Obj. Removed 9/19, 91 

A RRC Objection 9/19/91 

Obj. Removed 9/19/91 



1495 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



RRC OBJECTIONS 



10 NCAC 140 .0310 - Provision of Appropriate Activities 

Agency Revised Rule 
10 NCAC UP .0101 - Scope 

Agency Revised Rule 
10 NCAC 14P .0102 - Definitions 

Agency Revised Rule 
10 NCAC 14Q .0101 - Policy! Rights Restrictions/ Interventions 

Agency Revised Rule 
10 NCAC 14R .0104 - Seclusion! Restraint! Isolation Time Out 

Agency Revised Rule 
10 NCAC 14R .0/05 - Protective Devices 

Agency Revised Rule 
10 NCAC 14S .0102 - Communication Rights 

Agency Responded 
10 NCAC 14S .0103 - Living Environment 

Agency Responded 

Mental Health: Other Programs 

10 NCAC ISA .0127 - Certification 

Agency Revised Rule 
10 NCAC ISA .0128 - Out- of- Compliance Finding 

Agency Revised Rule 
10 NCAC ISA .0135 - Appeals and Waivers 

Agency Revised Rule 
10 NCAC ISL .0603 - Svc Purpose! Eligibility Requirements 

Agency Revised Rule 
10 NCAC ISM .0704 - Staff Requirements 

Agency Revised Rule 
10 NCAC 18Q .0809 - Agreement Between Resident and Program 

Agency Revised Rule 



A RRC Objection 
Obj. Removed 
A RRC Objection 
Obj. Removed 
A RRC Objection 
Obj. Removed 
ARRC Objection 
Obj. Removed 
ARRC Objection 
Obj. Removed 
ARRC Objection 
Obj. Removed 
ARRC Objection 

ARRC Objection 



RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 
ARRC Objection 
Obj. Removed 
ARRC Objection 
Obj. Removed 
ARRC Objection 
Obj. Removed 



9/19191 
9/19/9/ 
9/19/91 
9/19/91 
9/19/91 
9/19/91 
9/19/91 
9/19/91 
9/19/91 
9/19/91 
9/19/91 
9/19/91 
9/19/91 

10/17/91 
9/19/91 

10/17/91 



10/17/91 

10/17/91 

10/17/91 

10/17/91 

10/17/91 

10/17/91 

9/19/91 

9/19/91 

9/19/91 

9/19/91 

9/19/91 

9/19/91 



JUSTICE 



Criminal Information 



12 NCAC 

Agency 
12 NCAC 

Agency 
12 NCAC 

Agency 
12 NCAC 

Agency 
12 NCAC 

Agency 
12 NCAC 

Agency 
12 NCAC 

Agency 
12 NCAC 

Agency 
12 NCAC 

Agency 



4E .0103 - Advisory Policy Board 

Revised Rule 

4E .0104 - Definitions 

Revised Rule 

4E .0106 - Manuals 

Revised Rule 

4E .0203 - Non-Terminal Access 
Revised Rule 

4E .0301 - User Agreement 
Revised Rule 

4E .0302 - User Access Fee Agreement 

Revised Rule 

4E .0401 - DC I Terminal Operator 

Re\ised Rule 

4E .0403 - Suspension! Revocation of Operator Certification 

Re\ised Rule 

4F .0203 - Hit Confirmation 

Revised Rule 



ARRC Objection 9/19/91 

Obj. Removed 9/19/91 

ARRC Objection 9/19/91 

Obj. Removed 9/19/91 

ARRC Objection 9/19/91 

Obj. Removed 9/19/91 

ARRC Objection 9/19/91 

Obj. Removed 9/19/91 

ARRC Objection 9/19/91 

Obj. Removed 9/19/91 

ARRC Objection 9/19/91 

Obj. Removed 9/19/91 

ARRC Objection 9/19/91 

Obj. Removed 9/19/91 

ARRC Objection 9/19/91 

Obj. Removed 9/19/91 

ARRC Objection 9/19/91 

Obj. Removed 9/19/91 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



1496 



RRC OBJECTIONS 



12 NCAC4F .0301 - Arrest Fingerprint Card 

Agency Revised Rule 
12 NCAC4F .0404 - Ind's Rightj Review! HislHerjCrim History Record 

Agency Revised Rule 
12 NCAC 4F .0405 - b : se/CC 'Hi 'Lic/N 'on- Criminal Justice Emp Purposes 

Agency Revised Rule 
12 NCAC 4F .0501 - Expungements 

Agency Revised Rule 
12 NCAC 4G .0102 - Penalty Provisions 

Agency Revised Rule 
12 NCAC 4G .0201 - Notice of Violation 

Agency Revised Rule 
12 NCAC 4G .0301 - Informal Hearing Procedure 

Agency Revised Rule 

LICENSING BOARDS AND COMMISSIONS 

Architecture 

21 NCAC 2 .0211 - Unauthorized Practice 

Agency Revised Rule 
21 NCAC 2 .0601 - Committee on Investigations 

Agency Revised Rule 

Certified Public Accountant Examiners 

* 21 NCAC8G .0313 - Firm Name 
Electrolysis Examiners 

* 21 NCAC 19 .0202 - Appl Licensure/ / Electrologist Practicing/ 1/1/92 
Practicing Psychologists 

21 NCAC 54 .1701 - Information Required 

Agency Revised Rule 
21 NCAC 54 .2103 - Reinstatement 

Agency Revised Rule 

STATE PERSONNEL 

Office of State Personnel 

25 NCAC 11 .0301 - Purpose 



A RRC Objection 9/19/91 

Obj. Removed 9/19/91 

A RRC Objection 9/19/91 

Obj. Removed 9/19/91 

A RRC Objection 9/19/91 

Obj. Removed 9/19/91 

A RRC Objection 9/19/91 

Obj. Removed 9/19/91 

A RRC Objection 9/19/91 

Obj. Removed 9/19/91 

ARRC Objection 9/19/91 

Obj. Removed 9/19/91 

ARRC Objection 9/19/91 

Obj. Removed 9/19/91 



RRC Objection 10/17/91 
Obj. Removed 10/17/91 
ARRC Objection 9/19/91 
Obj. Removed 9/19/91 



RRC Objection 10/17/91 



RRC Objection 11/21/91 



ARRC Objection 8/22/91 

Obj. Removed 9/19/91 

ARRC Objection 8/22/91 

Obj. Removed 9/19/91 



RRC Objection 11/21/91 



1497 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



RULES INVALID A TED BY JUDICIAL DECISION 



1 his Section of the Register lists the recent decisions issued by the North Carolina Supreme Court, 
Court of Appeals, Superior Court (when available), and the Office of Administrative Hearings which 
invalidate a rule in the North Carolina Administrative Code. 



I5A NCAC 7J .0301 - MHO IS ENTITLED TO A CONTESTED CASE HEARING 

Thomas R. West, Administrative Law Judge with the Office of Administrative Hearings, declared Rule 
15A NCAC 07J .0301(b) void as applied in Lucy R. Hanson, Stanley P. and Jean C. Szwed, Petitioners 
v. N.C. Department of Environment, Health, and Natural Resources, Division of Coastal Management, 
Respondent (91 EHR 0551, 91 EHR 0557). 

15 A NCAC 21 D .0802(b)(2) -AVAILABILITY 

Robert Roosevelt Reillv Jr., Administrative Law Judge with the Office of Administrative Hearings, de- 
clared Rule 15A NCAC 21 D .0802(b)(2) void as applied in Wilson's Supermarket #12, Petitioner v. De- 
partment of Environment, Health, and Natural Resources, Respondent (91 EHR 0795). 

ISA NCAC 21 D .0805 - DECISION 

Thomas R. West, Administrative Law Judge with the Office of Administrative Hearings, declared Rule 
15A NCAC 21D .0805 void as applied in Glenn E. Davis Davis Grocery, Petitioner v. N.C. Department 
of Environment, Health, and Natural Resources, Division of Maternal and Child Health, W1C Section, 
Respondent (91 EHR 0694). 



6:19 NORTH CAROLINA REGISTER January 2, 1992 149S 



NOR TH CAROLINA ADMINISTRA TIVE CODE CLASSIFICA TION SYSTEM 



The North Carolina Administrative Code ( NCAC) has four major subdivisions of rules. Two 
of these, titles and chapters, are mandatory. The major subdivision of the NCA C is the title. 
Each major department in the North Carolina executive branch of government has been as- 
signed a title number. Titles are further broken down into chapters which shall be numerical 
in order. The other two, subchapters and sections are optional subdivisions to be used by 
agencies when appropriate. 

TITLE/MAJOR DIVISIONS OF THE NORTH CAROITNA ADMENISTRATEVE CODE 

ITLE DEPARTMENT LICENSENG BOARDS CHAPTER 



1 Administration 

2 Agriculture 

3 Auditor 

4 Economic and Community 

Development 

5 Correction 

6 Council of State 
Cultural Resources 

8 Elections 

9 Governor 

10 Human Resources 

1 1 Insurance 

12 Justice 

1 3 Labor 

14A Crime Control and Public Safety 

15A Environment, Health, and Natural 
Resources 

16 Public Education 

17 Revenue 

18 Secretary of State 
19A Transportation 
20 Treasurer 

*21 Occupational Licensing Boards 

22 Administrative Procedures 

23 Community Colleges 

24 Independent Agencies 

25 State Personnel 

26 Administrative Hearings 



Architecture 2 

Auctioneers 4 

Barber Examiners 6 

Certified Public Accountant Examiners 8 

Chiropractic Examiners 10 

Genera] Contractors 12 

Cosmetic Art Examiners 14 

Dental Examiners 16 

Electrical Contractors 18 

Electrolysis 19 

Eoresters 20 

Geologists 21 

Hearing Aid Dealers and Fitters 22 

Landscape Architects 26 

Landscape Contractors 28 

Marital & Family Therapy 31 

Medical Examiners 32 

Midwifery Joint Committee 33 

Mortuary Science 34 

Nursing 36 

Nursing Home Administrators 37 

Occupational Therapists 38 

Opticians 40 

Optometry 42 

Osteopathic Examination and 44 
Registration (Repealed) 

Pharmacy 46 

Physical Therapy Examiners 48 

Plumbing, Heating and Fire Sprinkler 50 
Contractors 

Podiatry Examiners 52 

Practicing Counselors 53 

Practicing Psychologists 54 
Professional Engineers and Land Surveyors 56 

Real Estate Commission 58 

Refrigeration Examiners 60 

Sanitarian Examiners 62 

Social Work 63 

Speech and Language Pathologists and 64 
Audiologists 

Veterinary Medical Board 66 



Note: Title 21 contains the chapters of the various occupational licensing boards. 



1499 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



CUMULA TIVE INDEX 



CUMULA TIVE INDEX 

(April 1991 - March 1992) 



1991 



1992 



Pages 



Issue 



1 - 44 1 - April 

44 - 99 2 - April 

100 - 185 3 - May 

186 - 226 4 - May 

227 - 246 5 - June 

247 - 325 6 - June 

326 - 373 7 - July 

374 - 463 8 - July 

464 - 515 9 - August 

516 - 677 10 - August 

678 - 721 11 - September 

722 - 783 12 - September 

784 - 923 13 - September 

924 - 980 14 - October 

981 - 1107 15 - November 

1108 - 1275 16 - November 

1276 - 1300 17 - December 

1301 - 1423 18 - December 

1424 - 1503 19 - January 



AO - Administrative Order 

AG - Attorney General's Opinions 

C - Correction 

FR - Final Rule 

GS - General Statute 

JO - Judicial Orders or Decision 

M - Miscellaneous 

NP - Notice of Petitions 

PR - Proposed Rule 

SO - Statements of Organization 

TR - Temporary Rule 



ADMINISTRATION 

State Construction, 465 PR 

State Employees Combined Campaign, 924 PR 

ADMINISTRATIVE HEARFSGS 

Hearings Division, 310 PR 
Rules Division, 665 PR 

ADMFNISTRATIVE ORDER 

Administrative Order, 926 AO 



6:19 NORTH CAROLINA REGISTER January 2, 1992 



1500 



CUMULA TIVE INDEX 



AGRICULTURE 

Food and Drug Protection Division, 576 PR, 725 PR, 1303 PR 

Markets, 576 PR 

North Carolina State Fair, 576 PR 

Pesticide Board, 725 PR 

Plant Industry, 102 PR, 469 PR, 576 PR 

CORRECTION 

Division of Prisons, 35 FR, 87 FR, 209 FR, 700 FR, 938 FR 

(RIME CONTROL AND PUBLIC SAFETY 

State Highway Patrol. Division of, 809 PR 

CULTURAL RESOURCES 

Archives and History, 932 PR 
State Library, 686 PR 

ECONOMIC AND COMMUNITY DEVELOPMENT 

.Alcoholic Beverage Control Commission, 4 PR 

Banking Commission, 1424 PR 

Community Assistance, 104 PR 

Credit Union Division, 231 PR, 683 PR, 1 108 PR 

Employment and Training, 590 PR 

Savings Institutions Division, 984 PR 

ENVIRONMENT, HEALTH, AND NATURAL RESOURCES 

Coastal Management. 299 PR. 1 139 PR 

Environmental Management, 197 PR. 271 PR, 447 PR, 1061 PR, 1315 PR 
Forest Resources, 300 PR 

Governor's Waste Management Board, 1277 PR 
Health: Epidemiology, 28 PR, 341 PR, 735 PR, 1279 PR 
Health Services, 9 PR, 327 PR, 727 PR, 815 PR, 1452 PR 
Land Resources, 494 PR, 810 PR 
Marine Fisheries, 122 PR, 690 PR 
Parks and Recreation, 693 PR 
Radiation Protection, 1367 PR 
State Registrar, 734 PR 

Water Treatment Facilitv Operators, 495 PR 

Wildlife Resources Commission, 84 PR, 170 PR, 198 PR, 301 PR, 647 PR, 692 PR, 1062 PR, 
1323 PR 

FINAL DECISION LETTERS 

Voting Rights Act, 48, 230, 248, 326, 464, 516. 681, 722, 806. 927, 1301 

GENERAL STATUTES 

Chapter 150B, 784 GS 

GOVERNOR/LT. GOVERNOR 

Executive Orders, 1, 45, 100, 186. 227, 247, 374, 678, 804, 924, 981, 1276 

HUMAN RESOURCES 

Aging, Division of, 72 PR. 422 PR 
Blind, Services for, 6S6 PR 
Departmental Rules, 1114 PR 
Economic Opportunity, 604 PR, 689 PR 
Facilitv Services, 104 PR, 471 PR, 592 PR. 1035 PR, 1443 PR 

Medical Assistance, 9 PR, 112 PR, 188 PR, 232 PR, 250 PR, 430 PR, 492 PR, 601 PR, 688 PR, 
726 PR, 807 PR, 932 PR, 1036 PR, 1277 PR, 1452 PR 



1501 6:19 NORTH CAROLINA REGISTER January 2, 1992 



CUMULA TIVE INDEX 



Mental Health, Developmental Disabilities and Substance Abuse Services, 5 PR, 49 PR, 375 PR, 
449 FR, 1446 PR 
Social Services, 116 PR, 1039 PR 

INDEPENDENT AGENCIES 

Housing Finance Agency, 1484 PR 

Safety and Health Review Board of North Carolina, 1069 PR 

INSURANCE 

Actuarial Services Division, 1 19 PR, 1060 PR 
Agent Services Division, 1056 PR, 1303 PR 
Financial Evaluation Division, 933 PR, 1308 PR 
Life and Health Division, 430 PR, 1 1 14 PR 
Special Services Division, 84 PR 

JUSTICE 

Criminal Justice Education and Training Standards, 607 PR 
Private Protective Services, 121 PR 
Sheriffs' Standards Division, 618 PR 
State Bureau of Investigation, 250 PR 

LABOR 

Boiler and Pressure Vessel, 1310 PR 

Occupational Safety and Health, 1138 PR, 1309 PR 

LICENSING BOARDS 

Architecture, Board of, 30 PR, 232 PR 

Certified Public Accountant Examiners, 201 PR, 935 PR, 1141 PR 

Cosmetic Art Examiners, 653 PR, 1066 PR 

Electrolysis Examiners, Board of, 737 PR 

Geologists, Board of, 654 PR 

Hearing Aid Dealers and Fitters, 496 PR, 655 PR 

Landscape Contractors' Registration Board, 665 PR 

Medical Examiners, Board of, 304 PR, 363 PR, 935 PR 

Nursing, Board of, 305 PR 

Optometry, Board of Examiners, 1068 PR 

Pharmacy, Board of, 201 PR, 1480 PR 

Physical Therapy Examiners, Board of, 33 PR, 363 PR 

Practicing Psychologists Examiners, 203 PR 

Professional Engineers and Land Surveyors, 497 PR 

Real Estate Commission, 171 PR, 500 PR 

LIST OF RULES CODIFIED 

List of Rules Codified, 89, 215, 314, 451. 504, 711, 907, 1087, 1281, 1487 

PUBLIC EDUCATION 

Elementary and Secondary, 29 PR, 199 PR, 303 PR, 694 PR, 1140 PR 

REVENUE 

Corporate Income and Franchise Tax Division, 816 FR 

Departmental Rules, 968 FR 

Individual Income, Inheritance and Gift Tax Division, 739 FR 

Individual Income Tax Division, 234 FR, 747 FR 

Intangibles Tax Division, 766 FR, 969 FR 

License and Excise Tax Division, 740 FR, 969 FR 

Motor Fuels Tax Division, 768 FR 

Property Tax Commission, 210 FR 

Sales and Use Tax, 817 FR 



6:1 9 NORTH CAROLINA REGISTER January 2, 1992 1502 



CUMULATIVE INDEX 



SECRETARY OF STATE 

Securities Division, 85 PR 

STATE PERSONNEL 

Office of State Personnel, 696 PR, 1082 PR, 1485 PR 
State Personnel Commission, 172 PR, 364 PR 

STATE TREASURER 

Retirement Systems, 736 PR 

STATEMENTS OF ORGANIZATION 

Statements of Organization, 518 SO 

TRANSPORTATION 

Assistant Secretary For Management, 1254 FR 

Assistant Secretary For Planning, 1259 FR 

Departmental Rules, 1142 FR 

Division of Highways, 1 146 FR 

Division of Motor Vehicles, 213 FR, 502 FR, 701 FR, 773 FR, 1229 FR 



1503 6:19 NORTH CAROLINA REGISTER January 2, 1992 



NORTH CAROLINA ADMINISTRATIVE CODE 

The full publication consists of 53 volumes, totaling in excess of 15,000 pages. It is supplemented monthly 
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